Latest news with #BangSi-hyuk
Hindustan Times
a day ago
- Business
- Hindustan Times
Could HYBE founder Bang Si-hyuk face life sentence in jail for alleged fraud? Here's all you need to know
Ahead of BTS' discharge from military service, its record label and talent agency HYBE is in the middle of a controversy as founder and chairman Bang Si-hyuk could face investigation by prosecutors over alleged fraudulent activities. As per a KED Global report, in 2019, Si-hyuk misled shareholders by telling them that the company didn't have plans to go public, but later proceeded with an initial public offering. (Also Read | Waiting for BTS World Tour 2025? HYBE CEO shares details on when band will reunite) The Seoul Metropolitan Police Agency has already submitted a warrant request to prosecutors for the search and seizure of HYBE's office. The Financial Supervisory Service has reportedly obtained evidence that Si-hyuk misled shareholders. In 2019, after HYBE informed its existing shareholders that it had no plans to go public, some investors divested their stakes. HYBE, then, started a process to go public after Si-hyuk allegedly signed a private shareholders' agreement with local PEFs — STIC Investments Inc., Estone Equity Partners and New Main Equity — to share profits from a future listing. This deal remained undisclosed until HYBE's stock plunged immediately after its IPO. While investors met with heavy losses from the post-IPO sell-off, Si-hyuk reportedly received 400 billion won ($289.3 million) from the PEFs based on the confidential arrangement. HYBE has found itself in troubled waters over the alleged failure to disclose the profit-sharing agreement between Si-hyuk and the PEFs. This could be a violation of disclosure rules under the Capital Markets Act. The Financial Supervisory Service is conducting a fast-tracked investigation into Si-hyuk's transactions with the PEFs. If Si-hyuk is prosecuted and convicted of fraudulent disclosure and illicit gains, he could be jailed for five years or more. He reportedly could also face a life sentence if the profit exceeds 5 billion won, in accordance with the Capital Markets Act. Meanwhile, prosecutors have already raided the HYBE Seoul headquarters over an insider trading probe involving one of its employees. The person is being investigated for allegedly using nonpublic information to gain approximately 240 million won in illicit profits.
India Today
2 days ago
- Business
- India Today
Hybe chairman faces probe over alleged fraudulent trading ahead of BTS comeback
As global titan group BTS gears up for its long-awaited full-group comeback later this year, the group's agency, Hybe, is under intense scrutiny. Founder and hairman Bang Si-hyuk is reportedly being investigated by South Korea's financial watchdog for alleged fraudulent and unfair to Korean media reports, the Financial Supervisory Service (FSS) has been probing Bang Si-hyuk's actions during Hybe's pre-IPO phase in 2019. Investigators suspect that he misled institutional investors by downplaying the likelihood of a public listing — all while preparing for it behind the scenes. He is also alleged to have entered into a profit-sharing deal with private equity funds linked to his acquaintances, reportedly earning around 400 billion won (approximately $290 million) after Hybe's blockbuster IPO in 2020. The arrangement was never officially disclosed — a possible violation of capital market FSS has not issued formal statements confirming the investigation, Hybe representative apparently replied to a query on the same with Xports News. They were quoted stating, "We cooperated with the investigative authorities' request to provide data regarding the actions of a former employee who resigned." Meanwhile, reports suggest the case may be fast-tracked to prosecutors, with a separate police probe already in BTS fans, the timing couldn't be more delicate. The group's full reunion is expected once all seven members complete their mandatory military service, with Suga set to be discharged by June 21. Jin and J-hope have already returned, while RM and V will finish service on June 10, and Jimin and Jungkook on June Hybe has reiterated that new music and performances are in development. CEO Park Ji-won said in March that the members would need time to regroup creatively, but a comeback is firmly on the Watch
Yahoo
3 days ago
- Business
- Yahoo
HYBE, Home of BTS, Raided in Insider Trading Investigation
The post HYBE, Home of BTS, Raided in Insider Trading Investigation appeared first on Consequence. HYBE, the management company behind BTS and other major K-pop acts, has been raided by prosecutors as part of an insider trading investigation. According to The Korea Times, the Seoul Southern District Prosecutors' Office recently searched the company's headquarters in central Seoul over allegations of an executive using insider information to gain profits of $176,500 (240 million won). This executive is being investigated after he allegedly purchased shares of fellow K-pop agency YG Entertainment's subsidiary YG Plus after learning of HYBE's investment plans in the company. In January 2021, HYBE and its technology subsidiary, Weverse Company, acquired 17.89% of YG Plus in a merchandising and distribution deal. Separately, Bang Si-hyuk, the founder and chairman of HYBE, is under investigation over allegedly defrauding investors ahead of the company's initial public offering in 2020 and pocketing $289 million (400 billion won). In addition to BTS, HYBE is home to TXT, Seventeen, LE SSERAFIM, and other K-pop stars. Popular Posts Billy Joel Diagnosed with Brain Disorder, Cancels All Upcoming Tour Dates Man Wearing Nazi T-Shirt Gets a Beatdown from Fans at Punk Rock Bowling Fest Freddie Mercury's Alleged Child Revealed in New Biography David Lynch's Personal Archive Going Up for Auction The 30 Best Action Movie Stars of All Time, Ranked Is The Who's Farewell Tour in Turmoil? Subscribe to Consequence's email digest and get the latest breaking news in music, film, and television, tour updates, access to exclusive giveaways, and more straight to your inbox.
Korea Herald
3 days ago
- Business
- Korea Herald
Prosecutors raid K-pop powerhouse Hybe over allegations of fraudulent trading
Prosecutors have raided Hybe Co., a K-pop agency behind global superstar BTS, over allegations of insider trading by one of its executives, judicial sources said Thursday. According to the sources, the Seoul Southern District Prosecutors Office recently searched Hybe's headquarters in central Seoul to investigate allegations that an executive gained illicit profits worth 240 million won ($176,500) through stock trading using insider information. The executive, whose identity was withheld, is suspected of purchasing shares of YG Plus Inc., an affiliate of another K-pop powerhouse YG Entertainment, after learning of Hybe's plan to invest in the company. Separately, Hybe founder and chairman Bang Si-hyuk has also been under police investigation over charges that he intentionally misled investors ahead of the company's initial public offering in 2020. (Yonhap)
Korea Herald
4 days ago
- Business
- Korea Herald
Hybe founder Bang probed over IPO flaws
Bang Si-hyuk, founder and chairman of the K-pop powerhouse Hybe, has been under investigation over charges that he intentionally misled investors ahead of the company's stock market debut, industry sources said Wednesday. According to the sources, the Financial Supervisory Service (FSS), the country's financial watchdog, has been probing Bang on speculation that he had sought to list Hybe on the stock market while stressing that there was no plan for Hybe's initial public offering (IPO). The sources said Bang signed a deal with private equity funds in 2020 to share a portion of the gains from the Hybe's IPO, and the Hybe chairman received some 400 billion won (US$291.3 million). But in 2019, Bang said to investors that Hybe's stock market listing was impossible while applying for a designated external auditor for its IPO, according to the sources. Hybe, listed on the Korean stock market in October 2020, closed at 265,000 won Wednesday, down 7.33 percent from the previous session's close. (Yonhap)
