On Could 28, the Monetary Supervisory Service (FSS) of South Korea carried out a legal investigation into HYBE Company Chairman Bang Si-hyuk for allegedly masterminding a fraudulent securities transaction for roughly 400 billion KRW (roughly $290 million). The controversy briefly centres across the secret shareholder agreements shaped earlier than HYBE’s 2020 IPO.
As per experiences on-line, these agreements could have bypassed regulatory disclosure guidelines and brought about substantial monetary losses for normal buyers. Because the information broke out, followers of the Ok-pop group have been discussing the aftermath for teams underneath the HYBE label, together with worldwide teams similar to BTS, SEVENTEEN, and extra.
Nevertheless, you will need to know why the FSS is pinpointing Bang Si-Hyuk. Under are all the main points relating to the current legal investigation surrounding HYBE Company and its chairman.
Hybe chairman Bang Si-hyuk underneath investigation for alleged fraudulent buying and selling — will it have an effect on BTS’ full-group comeback?https://t.co/b46fcyEN4Z#BTS #BTSComeback #BTSisBack #HYBE #BangSiHyuk #KpopNews pic.twitter.com/0zb3xiccot
— KpopHerald (@Kpop_Herald) Could 29, 2025
HYBE Company Chairman Bang Si-Hyuk Allegedly Indicted For Fraudulent Securities Exercise
As per AllKpop, the FSS is investigating whether or not Bang Si-Hyuk, earlier than HYBE’s preliminary public providing (IPO), had secret “earn-out” preparations with non-public fairness corporations (PEFs), particularly Stick Funding, EastStone Fairness Companions, and NewMain Fairness.
In accordance with experiences, Bang allegedly acquired 30% (securing round 400 billion KRW, roughly $290 million) of the proceeds from the sale of PEFs’ shares after the IPO resulting from these agreements. Since these agreements weren’t revealed all through the preliminary public providing (IPO) course of, the FSS is investigating potential violations of the Capital Markets Act and unfair buying and selling practices, elevating questions relating to the securities market’s equity and transparency.
Earlier, inside two weeks of HYBE’s October 2020 preliminary public providing (IPO), the corporate’s inventory worth fell by over 60%. Retail buyers misplaced a big sum of money resulting from their ignorance of the hid agreements. Because of the opaqueness of those shareholder agreements, the safety of minority buyers and the ethical obligations of enterprise executives have come underneath scrutiny.
[Exclusive] hybe’s bang si hyuk underneath double investigation for “fraudulent unfair buying and selling”
Regardless of claiming “no IPO plans,” hybe requested a delegated audit
Police have utilized for a brand new search warrant pic.twitter.com/4Be52BPDNR— Cake🍀 (@CakeDegg) Could 29, 2025
HYBE’s Official Assertion Following The Controversy
Following the controversy, HYBE Company issued an official assertion denying the fees. HYBE has denied any misconduct, claiming that the shareholder agreements had been exempt from the regulation’s disclosure requirement on the time of the IPO.
The enterprise insists that the first shareholders remained the identical and that the agreements had been regular non-public transactions for an unlisted enterprise. Nevertheless, contemplating their potential results on investor pursuits and market integrity, the FSS is intently inspecting whether or not these preparations must have been disclosed.
If the violations are confirmed by the FSS, Bang Si-Hyuk would possibly face a number of penalties underneath Article 443 of the Capital Markets Act. Because the inquiry has reached the purpose the place legal expenses are potential, the FSS has to date despatched the case to the prosecution. The prosecution will resolve whether or not to file formal accusations towards Bang Si-Hyuk and different events implicated.
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