Yes because they were not wearing makeup at the time.
" After talking about YG’s management style the next question asked was, “Did you ever have any complaints about YG?” The topic quickly changed back to looks.
CL said, “We (
2NE1) are a girl group. He keeps saying that we are ugly.” Lee Seung Gi was surprised and asked, “He tells you directly that you are ugly?” CL said “Yes.” CL continued, “YG came to a concert rehearsal once. When we do a rehearsal we don’t put on any makeup. He looked from afar into the screen and said ‘Ah… They are really ugly.’ In front of all the staff! I was a bit disappointed.” -
Source
Great song by 2NE1 - Ugly!
I think I’m ugly
And nobody wants to love me
Just like her I wanna be pretty
I wanna be pretty
Don’t lie to my face
Tellin’ me I’m pretty
I think I’m ugly
And nobody wants to love me
Just like her I wanna be pretty
I wanna be pretty
Don’t lie to my face
'Cause I know I’m ugly