Seoul: Hybe Chairman Bang Si-hyuk, who is currently overseas for work, announced his intention to return to Korea to "fully cooperate" with an ongoing investigation into alleged unfair trading practices.
According to Yonhap News Agency, in his first official response to the allegations, Bang sent an internal email to employees expressing regret over the "confusion and concerns" the controversy has caused. He emphasized his commitment to addressing the allegations and alleviating the stress or anxiety these events have imposed on the community.
Bang, the founder and chairman of Hybe, is currently under investigation by the Securities and Futures Commission under the Financial Services Commission. He is accused of misleading investors in 2019 by falsely claiming that Hybe's initial public offering (IPO) would be delayed. This reportedly induced investors to sell their shares to a special purpose company (SPC) established by a private equity fund backed by Hybe executives.
Authorities suspect that Hybe was preparing for its IPO at the time, which contradicts what was conveyed to investors. Following the company's public debut, the SPC sold its shares, with Bang allegedly receiving 30 percent of the profit from the sale based on a prior shareholder agreement.
Additionally, Hybe is undergoing a separate tax investigation by the National Tax Service regarding alleged fraudulent securities transactions related to the IPO. Bang assured employees of his commitment to a swift resolution, allowing them to focus on their core mission of creating and sharing entertainment and culture worldwide.