HYBE has pledged to cooperate absolutely with authorities as South Korean monetary regulators reportedly put together to refer the Okay-pop big’s founder and Chairman Bang Si-hyuk to prosecutors over alleged securities fraud associated to the corporate’s 2020 IPO.
That’s in line with The Korea Herald and different native information shops, which report that The Securities and Futures Fee’s capital market investigation staff voted on Monday (July 7) to refer Chairman Bang to prosecutors, with the fee set to formally contemplate the advice at its July 16 assembly.
The Korea Instances mentioned referral to the prosecution is probably the most extreme motion that monetary regulators in Korea can take towards a person suspected of violating the Capital Markets Act.
On June 30, South Korean police raided Korea Trade workplaces in Seoul as a part of an increasing investigation into alleged securities violations associated to the corporate’s IPO.
“HYBE is absolutely cooperating with the native authorities, together with the monetary regulators and the police, by submitting related supplies and offering detailed explanations as a part of the fact-finding efforts.”
HYBE
Citing Korean police, Korea JoongAng Day by day reported on the time that the authorities collected proof for his or her probe into potential capital markets regulation violations by Chairman Bang.
In late Might, it was reported that the Monetary Supervisory Service (FSS) intensified its probe into Chairman Bang concerning alleged preparations with particular buyers and personal fairness funds previous to the corporate’s 2020 IPO.
Whereas this story was initially lined on the shut of 2024, it gained renewed consideration greater than a month in the past when the Korea Financial Day by day printed further particulars.
The publication mentioned the FSS was conducting “a fast-tracked investigation into [Chairman] Bang’s transactions with the PEFs and plans to refer the case to prosecutors for potential felony prosecution.”
“We’ll take the mandatory time to completely display that the IPO was carried out in full compliance with legal guidelines and laws.”
HYBE
Chairman Bang is reportedly alleged to have defrauded early buyers and pocketed about 400 billion received (approx. $291 million) or 30% of the non-public fairness fund’s funding returns after HYBE accomplished its itemizing in October 2020.
The FSS claims he misled buyers in 2019 by saying the corporate had no plans to go public, prompting them to promote their shares to a non-public fairness fund related to him.
In late Might, South Korean authorities raided HYBE’s headquarters as a part of a separate investigation into alleged insider buying and selling by a former government.
That unnamed former exec, as reported by the Korea Instances, allegedly made $176,500 by shopping for shares in rival Okay-pop firm YG Leisure’s subsidiary YG Plus, after studying that HYBE was planning to spend money on the inventory.
HYBE’s shares fell 1.6% to 277,000 received ($201) on Wednesday in Seoul, snapping two straight classes of features.
HYBE mentioned in a press release issued to MBW: “We remorse any concern attributable to the current stories associated to our IPO course of. HYBE is absolutely cooperating with the native authorities, together with the monetary regulators and the police, by submitting related supplies and offering detailed explanations as a part of the fact-finding efforts.”
“We’ll take the mandatory time to completely display that the IPO was carried out in full compliance with legal guidelines and laws.”Music Enterprise Worldwide
