Bang Si-hyuk, chairman of HYBE, was summoned by the Financial Supervisory Service and investigated on charges of "fraudulent unfair trading" related to the company's KOSPI listing.
According to the financial investment industry on July 3, the Financial Supervisory Service, which is investigating alleged violations of the Capital Markets Act during HYBE's listing process, summoned and questioned Chairman Bang Si-hyuk at the end of June.
Chairman Bang is accused of deceiving shareholders by claiming there were no plans for an initial public offering (IPO) at the time of HYBE's listing in 2020, while in fact moving forward with the company's listing.
According to industry sources, before listing HYBE, Chairman Bang signed a contract with a private equity fund (PEF) established by an acquaintance, agreeing to share 30% of the capital gains from the sale of shares. After the listing, he reportedly settled for approximately 400 billion won.
These private equity funds purchased HYBE shares from existing investors, such as institutional investors and venture capital (VC) firms. It is reported that the Financial Supervisory Service has obtained evidence that, during this period, Chairman Bang's side informed existing investors that listing was not possible at the time, while simultaneously pushing for an IPO behind the scenes, including applying for a designated auditor.
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