Founder of Hybe, Bang Si Hyuk is investigated on suspicion of fraud involving the opening of the company’s capital; Check out the case!
One of the main names among the CEOs of the K-Pop industry, Bang si hyukfounder of Hybe, a company responsible for group management such as BTS, Seventeen, TXT, among others, became the target of a criminal investigation conducted by South Korea’s Financial Supervision Service (FSS). Authorities investigate suspicions that the entrepreneur was involved in fraudulent practices during the producer’s capital opening process, which includes possible omissions and transactions considered irregular with investors.
About the case
According to information from the sector, South Korea’s financial authorities gathered evidence that, in 2019, Bang si hyuk He would have deceived investors in claiming that the company had no plans to open its capital in the stock market. This statement would have led some of these investors to sell their shares to a private investment fund, managed by a person close to the businessman. However, investigations indicate that at the same time Hybe was already taking the first steps in the process of opening capital, also known by the term IPO.
The case gained even more repercussion after the discovery that Bang He had an agreement with this fund, which guarantees it 30% of the profits made in the purchase of shares. It is estimated that he received about 400 billion Won, approximately $ 291 million through this operation. The problem, according to the authorities, is that this contract was never officially informed during the process of opening capital, which raises suspicions about lack of transparency and possible violations of the rules that regulate the country’s financial market.
Given the evidence, the FSS has classified the situation as a case of fraud in the market, framed in the South Korean legislation as “unfair negotiation”. The process is expected to be quickly referred to the prosecutor, which will be responsible for conducting the criminal investigation. At the same time, the Seoul Metropolitan Police Financial Crime Division also opened its own investigation over the episode.
Amid repercussions, Hybe commented on stating that all transactions were made within the law, with legal monitoring at all stages.
If the accusations are confirmed, Bang si hyuk And the others involved may face severe penalties to which, according to South Korean legislation, cases in which profits obtained illegally exceed 5 billion Won (about $ 3.63 million) may result in life imprisonment or at least five years in prison.
Source: Recreio
