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Pink Villa
3 days 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.
Hindustan Times
3 days 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.
Korea Herald
6 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)
Korea Herald
25-05-2025
- Automotive
- Korea Herald
Samsung SDI to raise W1.7tr via rights offering
Korean battery-maker plans to use funding for US joint venture with GM, Hungarian plant upscale and solid-state battery development Samsung SDI's paid-in capital increase attempt is expected to garner approximately 1.65 trillion won ($1.21 billion) as the subscription rate for the newly issued shares exceeded 100 percent. According to the Financial Supervisory Service's regulatory filing on Friday, the subscription rate of Samsung SDI's rights offering for the employee stock ownership association and existing shareholders reached 101.96 percent to surpass the to-be-issued shares. The new stocks will be listed on June 13 at the price of 140,000 won per share. Samsung Electronics, which holds a 19.58 percent stake in Samsung SDI as its largest shareholder, earlier announced that it would go for 120 percent of the maximum subscription for the rights offering. Industry watchers attributed Samsung SDI's successful capital increase to the company's undervalued stock price and hopeful outlook for mid- to long-term businesses, such as batteries for electric vehicles and energy storage systems, as well as better earnings performance. Samsung SDI plans to use the additional funding for investments in the US joint venture with General Motors, expansion of the Hungarian manufacturing plant's capacity, and investments in facilities for solid-state batteries, as the company looks to strengthen competitiveness across all business areas and bolster the foundation for future growth. Samsung SDI's stock price was 160,200 won per share at Friday's closing, down 1.78 percent from the previous day.
Korea Herald
23-05-2025
- Business
- Korea Herald
Financial authorities hold meeting to assess impact of US, Japan bond yield surge
South Korea's top financial officials convened a meeting Friday to assess the potential impact of rising US and Japanese government bond yields on the domestic financial and foreign exchange markets, the finance ministry said. The meeting, chaired by acting Finance Minister Kim Beom-suk, brought together Bank of Korea Governor Rhee Chang-yong, Financial Services Commission Chairman Kim Joo-hyun and Financial Supervisory Service Governor Lee Bok-hyun, according to the Ministry of Economy and Finance. The meeting came amid heightened global market volatility, triggered in part by a sharp uptick in long-term bond yields. On Wednesday, the yield on 30-year US Treasury bonds rose 12.3 basis points to 5.092 percent, its highest closing level since October 2023. Similarly, yields on Japan's 30-year and 40-year government bonds hit multi-year highs earlier this week. The authorities emphasized that they will remain vigilant and take timely actions to ensure market stability. (Yonhap)
