The Financial Supervisory Service (FSS) is reportedly investigating HYBE founder and chairman Bang Si-hyuk for suspected fraudulent trading.
According to the financial investment industry on the 28th, the FSS has found evidence that before HYBE went public in 2020, Bang misled investors in 2019 by saying there were no plans for an initial public offering (IPO), prompting them to sell their shares to a private equity fund (PEF) established by an associate of his.
Notably, Bang is said to have signed a contract to share 30% of the profits from the share sale with the PEF before the IPO. After HYBE went public, Bang reportedly received around 400 billion won through this arrangement. This contract was not disclosed in the company's securities registration statement.
It has also been reported that institutional investors and venture capital firms sold their shares based on Bang's statements. The FSS is expected to fast-track the case and refer Bang to the prosecution soon.
(SBS Entertainment News | Kang Kyung-youn)