HYBE has released an official statement regarding ongoing investigations.
On July 9, it was reported that financial authorities are set to file a criminal complaint against HYBE’s chairman Bang Si Hyuk next week on the charges of fraudulent transactions under the Capital Markets Act.
Regarding the allegations, HYBE released the following statement:
Hello, this is HYBE.
We sincerely apologize for causing concern with the recent news related to our company’s listing process.
Regarding the current issues being raised, we are actively cooperating with the financial authorities and the police by submitting detailed explanations and relevant materials to verify the facts.
Even if the process takes time, we will thoroughly clarify that our IPO (initial public offering) at the time was conducted in full compliance with laws and regulations.
Thank you.
According to the financial authorities, the Capital Market Investigation Deliberation Committee (CMIDC)—a subcommittee of the Financial Services Commission’s Securities and Futures Commission (SFC)—held a meeting on July 7 and decided to submit the case to the SFC with a recommendation to file a complaint with the prosecution.
The CMIDC suspects that Bang Si Hyuk and three senior executives, along with one aide, set up a private equity fund and profited from it. The SFC is scheduled to hold a regular meeting on July 16, during which they will deliberate on the case concerning Bang Si Hyuk.
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