The management agency of Korean boy group Big Bang has terminated its contract with member Seungri following the K-pop star's retirement announcement.

• Big Bang's Seungri announces retirement amid controversy

According to a report on The Korea Herald, YG Entertainment on Wednesday announced it is ending its exclusive contract with Seungri as per his request.

The company also apologized to the public for the controversy.

"We deeply apologize to fans and many people for causing concerns," YG said. "Following Seungri's announcement that he will retire, YG decided to accept his request to end the exclusive contract."

On Monday, Seungri (born Lee Seung-hyun) posted a message on his personal Instagram account, expressing his intent to retire.

The Korean star is in the middle of an investigation on allegations that he solicited prostitutes for investors for his businesses.

He was also tagged in the investigation on Burning Sun for drug abuse and sexual abuse.

The club closed down earlier this month.

The investigation on Seungri also led to the revelation that singer Jung Joon-young is involved in sharing personal sex videos taken with hidden cameras on a mobile chat room which included Seungri.

Jung admitted to the allegations and vowed to halt all activities in show business.

Both Jung and Seungri are scheduled to appear for police interrogation on Thursday.

Seungri had apologized for the scandal during one of of the legs of his current tour, which included a stop in Manila in January.

He is expected to start his mandatory military service on March 25 as an active duty soldier.