His management agency, C-JeS Entertainment, announced in a statement it had terminated its contract with Park, of K-pop boy band JYJ, and he would retire from the entertainment industry.
All of his engagements have been called off, and the three-member JYJ is expected to disband.
Park, 33, is suspected of taking methamphetamines earlier this year with his former fiancee, Hwang Ha-na, who is the granddaughter of the founder of Namyang Dairy Products.
Park had denied all allegations during the police investigation on three occasions and at a press conference earlier this month.
Contrary to his claims of innocence, a drug test of a hair sample from his leg by the National Forensic Service came back positive. Police secured the sample alongside a search and seizure of his home and car earlier this month.
Park is suspected of attempting to destroy evidence by dyeing or shaving much of the hair from his body before undergoing the drug test. An initial urine test yielded negative results for drugs in his system.
Police expanded their probe to include Park after Hwang, 31, allegedly told police that Park had lured her into taking illegal drugs with him. Hwang was arrested in early April on charges of buying and using methamphetamine in 2015.
Police also obtained security video footage showing Park picking something up about 20-30 minutes after wiring money to a bank account via an ATM in Seoul. Police suspect it was a package of illegal drugs.
Park said he had wired the money at Hwang’s request and did not know about any drug deal.
Park’s fans issued a statement earlier in the day requesting his expulsion from the entertainment scene.
“It reached a point that we cannot support him anymore, and we strongly urge his management agency, C-JeS Entertainment, to expel him,” the fan group said in a statement.