First Official Statement via Internal Email Regarding Allegations
"I Will Humbly Await the Authorities' Judgment"
"I Will Sincerely Cooperate with the Investigation and Do My Best to Resolve the Issue"
Bang Sihyuk, Chairman of HYBE, who is under suspicion of "fraudulent unfair trading" during the company's initial public offering (IPO) process, has made his first official statement. Chairman Bang apologized to company members and stated that he would return to Korea as soon as possible to cooperate fully with the authorities' investigation.
In an email sent to HYBE employees on the morning of August 6, Chairman Bang said, "Due to music production for artists preparing for their comebacks and business expansion for the company's future, I have inevitably spent extended periods overseas in recent years," adding, "I plan to temporarily put aside urgent work and business meetings and return to Korea as soon as possible to prioritize participation in the authorities' investigation procedures."
He continued, "No one understands better than I do that I cannot allow my personal issues to continue to burden the company and the industry." He also stated, "Just as I provided detailed explanations about the situation at the time of the IPO during the financial authorities' previous investigation, I will cooperate fully with the upcoming investigation and once again provide a thorough explanation. I expect that through this process, the facts will be clarified. I will humbly await the authorities' judgment."
Chairman Bang is suspected of deceiving existing investors before HYBE's IPO in 2020 by claiming there were no plans for an IPO, and of arranging for them to sell their shares to a private equity fund (PEF) established by an acquaintance. It is reported that Chairman Bang contracted to receive more than 30% of the capital gains from the sale to the PEF and settled approximately 400 billion won after the IPO. The details of this contract were not disclosed in the securities registration statement.
On July 24, police conducted a search and seizure at HYBE's headquarters in Yongsan-gu, Seoul. In addition, the Securities and Futures Commission (SFC) under the Financial Services Commission filed a criminal complaint against Chairman Bang with the prosecution, and the Financial Supervisory Service's special judicial police, under the direction of the Seoul Southern District Prosecutors' Office, is investigating the same matter. The National Tax Service also launched a tax investigation into HYBE last month.
Chairman Bang said, "Due to various circumstances that have continued since last year, as well as my recent personal matters, both the company and my name have been repeatedly mentioned in unfavorable news reports," adding, "As the founder and chairman, I feel a heavy sense of responsibility for causing concern."
He went on to say, "I have also become increasingly concerned that, because of my personal issues, our members and artists?who should be able to focus solely on their creative and business activities?might suffer direct or indirect harm. I will do my utmost to explain and resolve all these matters so that my personal issues do not become obstacles to your talents, capabilities, or spirit of challenge."
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