SEOUL, South Korea — The founder of one of the most successful K-Pop music agencies stepped down on Friday amid accusations that he tried to cover up alleged drug use by one of the company's artists.

Yang Hyun Suk said in a statement posted on the website of YG Entertainment that he was dealing with "malicious gossip," but that he was stepping down to protect the reputation of the company's artists.

The announcement comes after singer B.I. left the boy band iKON following a report by news website Dispatch that he tried to solicit drugs from another YG artist. B.I. said in a statement on Instagram that he once considered purchasing drugs, but denied taking them.

Yang, a major 1990s pop star, founded YG in 1996 and was its chief producer. YG manages some of the biggest names in K-Pop, including girl band BLACKPINK.