HYBE Chairman Bang Si-hyuk Faces Allegations of Stock Market Fraud

HYBE Chairman Bang Si-hyuk is reportedly facing allegations of stock market fraud, as the company releases an official statement addressing the issue.

According to financial authorities and the investment industry on the 9th, the Capital Market Investigation Deliberation Committee, a review body under the Financial Services Commission's Securities and Futures Commission (SFC), has recently forwarded its opinion to the SFC to prosecute Chairman Bang.

Industry insiders claim that during HYBE's initial public offering (IPO) preparations in 2019, Chairman Bang allegedly informed existing shareholders that there were no plans for an IPO. Believing this, venture capitalists and institutional investors sold their HYBE shares to private equity funds (PEFs). It is reported that Chairman Bang profited approximately 400 billion KRW, which is 30% of the investment gains from these PEFs.

In response, HYBE issued an official statement expressing regret for the concerns caused by news related to their listing process. The company stated, "We are actively cooperating with financial authorities and the police by providing detailed explanations and relevant materials to verify the facts of the current issues." They concluded by assuring, "We will thoroughly demonstrate that the listing at that time was conducted in compliance with laws and regulations, even if it takes some time."

Reported by Kim Ji-won, TenAsia Reporter one@tenasia.co.kr