Seoul: Bang Si-hyuk, founder and chairman of the K-pop entertainment firm Hybe, is currently under investigation for allegedly misleading investors before the company's stock market debut, industry sources revealed.
According to Yonhap News Agency, the Financial Supervisory Service (FSS), the nation's financial watchdog, is investigating Bang amid allegations that he pursued a stock market listing for Hybe while publicly denying any plans for an initial public offering (IPO).
Sources indicated that in 2020, Bang made an agreement with private equity funds to share profits from Hybe's IPO. As a result, Bang received approximately 400 billion won (US$291.3 million). However, in 2019, Bang reportedly informed investors that a stock market listing for Hybe was not feasible, even as the company applied for a designated external auditor for its IPO.
Hybe successfully listed on the Korean stock market in October 2020. The company's shares closed at 265,000 won on Wednesday, marking a 7.33 percent decrease from the previous session's closing price.