Latest news with #BangSiHyuk
Khaleej Times
5 hours ago
- Business
- Khaleej Times
Explained: Why BTS' label Hybe's chairman is facing life imprisonment over fraud allegations
BTS fans around the world are eagerly waiting for the K-pop band's reunion after the remaining members are released from military duty in June. However, Bang Si-hyuk, the man who formed BTS, is currently under investigation after being accused of fraudulent and unfair trading practices. According to Korean media outlets, Bang Si-hyuk, 52, is being investigated by the Financial Supervisory Service (FSS) for allegedly misleading investors and bagging about 400 billion won ($289 million) during the company's initial public offering (IPO) process. Did Bang Si-hyuk deceive investors? Sources say the FSS has evidence suggesting Bang may have engaged in deceptive practices involving private equity firms. Back in 2019, when Hybe was still known as BigHit Entertainment, existing shareholders were told there was had no immediate plans to go public, persuading some investors to sell their stakes to a private equity fund allegedly set up by an associate. However, the company simultaneously began the process to go public after Bang allegedly signed a private shareholders' agreement with local PEFs to share profits from a future listing, a deal that was not disclosed at the time. While investors suffered heavy losses from the post-IPO sell-off, the private equity fund reaped a large profit after the company went public. The alleged gains from the scheme are estimated at around 400 billion won ($290 million). The BigHit IPO filed in October 2020 increased Bang's net worth to $2.8 billion, reportedly making him the only billionaire in South Korea's entertainment industry and the sixth-richest person in the country. Could it lead to life imprisonment? The FSS is investigating Bang's transactions with the PEFs and plans to refer the case to prosecutors for potential criminal prosecution, according to KED Global. HYBE's alleged secret profit-sharing agreement between Bang and the PEFs could constitute a violation of disclosure rules under the Capital Markets Act. If found guilty, Bang could face a prison sentence of five years or more, or a life sentence, if the profit exceeds 5 billion won. Meanwhile, BTS ARMY around the world are eagerly waiting for the seven band members to reunite. While j-hope and Jin have already completed their mandatory military service, Jungkook, Jumin, V, RM and Suga are set to be released from their duties in June.
Pink Villa
10 hours ago
- Entertainment
- Pink Villa
NewJeans' Hanni's previous comment about HYBE's money-mindedness reemerge amid Bang Si Hyuk's 400 billion KRW fraud case
HYBE chairman Bang Si Hyuk is currently under intense scrutiny due to the allegedly misinforming investors about HYBE's IPO plans and making profits of around 400 million KRW profits through unfair means. Currently, HYBE is under investigation and public opinion is largely against them. Amid the controversy, Hanni's previous remark regarding the company's greed and lack of artistic integrity gained renewed attention. Hanni's comment about HYBE and ADOR choosing profit over its artists NewJeans publicly declared their split from ADOR, in a press conference in November 2024. Speaking about the reason for such a big decision, Hanni accused ADOR of abandoning its artistic values for commercial gain. She articulated the girl group's collective thoughts regarding the entertainment label not having any integrity and genuineness, as they didn't care about the NewJeans members' well-being anymore. As per her, the label's actions were disrespectful towards the craft they represent and owe their dedication to. She called the HYBE-owned ADOR "a company that no longer has any sincerity in the art of music, a company that only has thoughts about making money, and doesn't have any conscience about the negative effect they create through their non-authentic means." Check out fan reactions to the resurfaced incident The majority of fans appeared to be of the same opinion as Hanni. NewJeans' devoted supporters, who stood firmly by the group during the intense public scrutiny surrounding the ADOR conflict, also rallied behind Hanni's resurfaced comment. They highlighted how Hanni was previously criticized and labeled "ungrateful" for speaking out against her agency, but in light of the recent Bang Si Hyuk stock fraud allegations, her words seemed to have been vindicated. Currently, Bang Si Hyuk case is being investigated for potential violations of the Capital Markets Act and unfair trading practices related to HYBE's 2020 IPO. If found guilty, he could face severe penalties, including life imprisonment or a minimum of five years in prison, under Article 443 of the Capital Markets Act. In the light of the issue, comments like "time cleared NJZ (NewJeans' new moniker)" and "Bang PD has done everything possible to kill its (HYBE's) values" flooded social media. Some even bashed the agency's supporters, calling them "clowns", while others expressed their eager anticipation of the quintet to put an end to their hiatus and return back to the K-pop scene.
Pink Villa
13 hours ago
- Business
- Pink Villa
BTS' meager HYBE IPO shares stir new concern amid Bang Si Hyuk's 400 Billion KRW stock fraud probe
BTS and HYBE's chairman, Bang Si Hyuk, is under investigation for insider trading, which has sparked fresh outrage. BTS fans are once again questioning how little the group received during the company's massive IPO in 2020. While this has major legal and financial implications, it has also reignited an emotional debate. Fans are now revisiting how little BTS received in comparison. Before the IPO, Bang Si Hyuk granted each BTS member around 68,000 HYBE shares. That's 478,695 shares in total for all 7 members. At the time, the shares were worth about 64.6 billion KRW (roughly USD 46 million). Each member received an estimated 9.2 billion KRW (approx. USD 6.7 million). In 2021, three members, Jin, J-Hope, and RM, sold part of their holdings. They earned between 1.8 billion and 4.8 billion KRW each. As of September 2023, BTS members became private shareholders. It's unknown whether they still hold their original shares. Based on last year's stock prices, those shares could now be worth about 15 billion KRW per member. That's roughly USD 11 million each. Still, it doesn't compare to the hundreds of billions earned by Bang and others close to him. Several individuals tied to the equity fund also reportedly profited. Some took home 100 billion to 200 billion KRW. This sharp gap in profit has angered many. Why are fans angry over Bang Si Hyuk? BTS is widely seen as the reason for HYBE's global success. Fans say it's unfair that the group received only a fraction of the financial reward. Many are now challenging Bang Si Hyuk's carefully maintained image as the 'father of BTS.' They're questioning how insiders walked away with hundreds of millions, while BTS got what some call 'breadcrumbs.' HYBE Chairman Bang Si Hyuk's Share Scandal On May 28, South Korea's Financial Supervisory Service (FSS) confirmed it is looking into Bang Si Hyuk for possible financial misconduct. According to Newsen, Bang Si Hyuk told early HYBE shareholders in 2019 that the company had no plans to go public. Based on that information, many sold their shares. But just months later, HYBE moved forward with its public listing. The shares those investors gave up ended up in the hands of a private equity fund. That fund was closely tied to Bang himself. He had a contract ensuring he would receive 30% of the fund's profit from the IPO. The result? Bang Si Hyuk reportedly earned around 400 billion KRW—roughly USD 300 million—after HYBE went public in October 2020. The Financial Supervisory Service (FSS) believes this may constitute illegal insider trading. The case is currently under review and may be handed to prosecutors for formal investigation. Financial experts note that executives often set up favorable terms before an IPO. But when misinformation is involved, ethical and legal boundaries are crossed. As the investigation unfolds, the spotlight is not just on Bang Si Hyuk. It's also on the wider system—one where massive profits often stay at the top, even when they're built on the backs of global stars like BTS. What is an IPO share? When a company wants to sell part of itself to the public for the first time, it is called an Initial Public Offering, or IPO. During an IPO, the company sells shares, which are small pieces of ownership in the company. People who buy these shares own a part of the company. This helps the company get money to grow and lets regular people invest in it as well. For example, HYBE, the company behind BTS, sold shares to the public in 2020 during its IPO. That's when people could buy a part of HYBE for the first time.
Time of India
2 days ago
- Business
- Time of India
BTS management company raided, founder under investigation as insider trading probe deepens
The company behind K-pop sensation BTS is facing serious trouble. Known for managing global acts like BTS, SEVENTEEN, and LE SSERAFIM, the firm is currently under investigation for insider trading. Authorities recently carried out a planned raid on its headquarters to look into allegations that one of its officials made illegal profits from trading stocks using confidential information. Prosecutors raid BTS' management company According to The Korea Times, the Seoul Southern District Prosecutors' Office raided the headquarters of BTS' management company. The search was reportedly conducted as part of an investigation into an unnamed executive who is suspected of using insider information to make about 240 million KRW through stock trading. Reports suggest this executive became aware that the company was planning to invest in another firm. After learning this, they allegedly bought shares in that company to benefit financially. Company's founder also under investigation Bang Si Hyuk, the founder and chairperson of the company, is also under investigation. He is being probed by the Financial Supervisory Service for suspected fraudulent activity. According to reports, Bang Si Hyuk may have misled investors by providing false information about the company's value. He is also accused of keeping around 400 billion KRW for himself during the company's initial public offering (IPO) in 2020. Check out our list of the latest Hindi , English , Tamil , Telugu , Malayalam , and Kannada movies . Don't miss our picks for the best Hindi movies , best Tamil movies, and best Telugu films .
Pink Villa
2 days ago
- Business
- Pink Villa
HYBE reacts to sudden raid amid risk of Bang Si Hyuk's arrest in 400 billion KRW stock fraud case, will BTS get impacted?
HYBE chairman Bang Si Hyuk, popularly known as Hitman, was under hot waters for his alleged stock fraud. He was accused of securing profit worth millions of KRW through misleading investors, leading to a search and seizure warrant against him. In recent development to the case, HYBE provided a statement regarding the issue, as reported by Xports News on May 30. However, it remains uncertain whether the case will impact BTS, and if yes, how. HYBE's statement regarding Bang Si Hyuk case A HYBE official addressed the Bang Si Hyuk stock fraud case, and shared the company's stance to Xports News on May 30. They said, "We cooperated with the investigative authorities' request to provide data regarding the actions of a former employee who resigned." According to the statement, it can be inferred that HYBE tried to shift the blame for fraudulent activities from its chairman to a now-resigned employee. They showed confidence in Bang Si Hyuk, by agreeing to assist police in the search and seizure process and shared all data needed for investigation against the ex-employee. About Bang Si Hyuk stock fraud case Bang Si Hyuk and associates allegedly misled investors in 2019 regarding HYBE's (then BigHit Entertainment) IPO plans. Despite informing certain investors of no immediate plans due to unfavorable market conditions, the company had already taken concrete steps towards an IPO by applying for a designated audit. This discrepancy is central to a case involving a substantial 400 billion KRW deal and alleged hidden profits of around 240 million KRW. Will the case affect BTS? BTS is nearing the end of their military service, with SUGA's discharge on June 21. Following their discharge, the group is expected to release new music, potentially dropping a new album within the next couple of months. This would likely be followed by a world tour, possibly kicking off towards early 2026. However, the ongoing investigation into HYBE might cast a shadow over BTS's comeback plans. As the face of the company, BTS could face unwanted scrutiny and criticism from detractors. The investigation might also impact HYBE's ability to plan and promote BTS's comeback effectively, potentially leading to delays or disruptions in their schedule.
