Latest news with #SecuritiesandFuturesCommission


Korea Herald
4 days ago
- Business
- Korea Herald
BTS producer becomes first tycoon referred to prosecution under new president's toughened financial oversight
Hybe says it will actively clarify Bang Si-hyuk's suspicions to regain trust South Korea's financial regulators have referred Hybe Chairman Bang Si-hyuk to the prosecution on charges of fraudulent trading, accusing him of misleading shareholders during the company's initial public offering and profiting nearly 400 billion won ($287.6 million) in the process. This marks the first time under the Lee Jae Myung administration that authorities have taken such strong disciplinary action against the head of a major conglomerate. Regulators reportedly gave Bang an unusual opportunity to appear in person and explain himself, but he declined to attend. The Financial Services Commission's Securities and Futures Commission held a regular meeting Wedneday and announced that it had referred Bang and former Hybe executives to prosecutors on suspicion of violating the Capital Markets Act, particularly its ban on unfair trading practices. A referral to the prosecution is the most severe action financial regulators can take against an individual accused of violating the law, in addition to administrative penalties. Under the Capital Markets Act, a person who gains or avoids losses of over 5 billion won through unfair trading may face a prison term of five years to life. 'The suspects circumvented the lock-up period meant to prevent major shareholders from offloading shares immediately after listing, and dumped their shares on the market for profit. The nature of this violation is particularly serious,' a financial authority official said via local media outlet. 'The stock price plunged afterward, causing significant harm to ordinary retail investors.' Hybe said it would actively work to clarify the suspicions and restore market trust. 'It is unfortunate that the financial regulators did not accept the major shareholder's explanation during the Financial Supervisory Service's investigation, in which he made clear he did not pursue personal gains based on the company's IPO,' Hybe said in a statement sent to The Korea Herald on Thursday. 'Nevertheless, we respect the decision and will do our utmost in the upcoming investigation to actively address the allegations and recover the trust of the market and our stakeholders,' the company added. According to authorities, Bang allegedly deceived early investors into selling their shares by falsely claiming that Hybe's IPO prospects in 2019 were bleak. He is also believed to have signed a private agreement with a private equity fund that had acquired a large stake in the company, pledging to share 30 percent of any future gains from selling his shares — eventually profiting nearly 400 billion won. In response to this type of misconduct, the Korea Exchange revised its IPO due diligence checklist late last year, adding requirements for underwriters to inspect contracts between shareholders and assess risks to investor protection.


Korea Herald
4 days ago
- Business
- Korea Herald
BTS producer becomes first tycoon referred to prosecution under Lee's toughened financial oversight
Hybe says it will actively clarify suspicions to regain trust South Korea's financial regulators have referred Hybe Chairman Bang Si-hyuk to the prosecution on charges of fraudulent trading, accusing him of misleading shareholders during the company's initial public offering and profiting nearly 400 billion won ($287.6 million) in the process. This marks the first time under the Lee Jae Myung administration that authorities have taken such strong disciplinary action against the head of a major conglomerate. Regulators reportedly gave Bang an unusual opportunity to appear in person and explain himself, but he declined to attend. The Financial Services Commission's Securities and Futures Commission held a regular meeting Wedneday and announced that it had referred Bang and former Hybe executives to prosecutors on suspicion of violating the Capital Markets Act, particularly its ban on unfair trading practices. A referral to the prosecution is the most severe action financial regulators can take against an individual accused of violating the law, in addition to administrative penalties. Under the Capital Markets Act, a person who gains or avoids losses of over 5 billion won through unfair trading may face a prison term of five years to life. 'The suspects circumvented the lock-up period meant to prevent major shareholders from offloading shares immediately after listing, and dumped their shares on the market for profit. The nature of this violation is particularly serious,' a financial authority official said via local media outlet. 'The stock price plunged afterward, causing significant harm to ordinary retail investors.' Hybe said it would actively work to clarify the suspicions and restore market trust. 'It is unfortunate that the financial regulators did not accept the major shareholder's explanation during the Financial Supervisory Service's investigation, in which he made clear he did not pursue personal gains based on the company's IPO,' Hybe said in a statement sent to The Korea Herald on Thursday. 'Nevertheless, we respect the decision and will do our utmost in the upcoming investigation to actively address the allegations and recover the trust of the market and our stakeholders,' the company added. According to authorities, Bang allegedly deceived early investors into selling their shares by falsely claiming that Hybe's IPO prospects in 2019 were bleak. He is also believed to have signed a private agreement with a private equity fund that had acquired a large stake in the company, pledging to share 30 percent of any future gains from selling his shares — eventually profiting nearly 400 billion won. In response to this type of misconduct, the Korea Exchange revised its IPO due diligence checklist late last year, adding requirements for underwriters to inspect contracts between shareholders and assess risks to investor protection.


South China Morning Post
5 days ago
- Business
- South China Morning Post
Hong Kong's asset management industry hits near-record US$4.5 trillion on massive inflows
Hong Kong strengthened its position as a leading global wealth management hub after investors committed major capital to the city last year, lifting assets under management to HK$35.14 trillion (US$4.5 trillion), just shy of an all-time high, before stocks and other instruments delivered hefty gains. Assets under management in the city grew almost HK$4 trillion in 2024, or 13 per cent from a year earlier, the Securities and Futures Commission said in an annual survey published on Wednesday, thanks to an 81 per cent surge in net fund inflows of HK$705 billion, it added. The record of HK$35.55 trillion was set in 2021. Inflows for the asset management and fund advisory business soared 571 per cent to HK$321 billion, while the private banking and private wealth management business recorded a 15 per cent increase in assets under management to HK$10.4 trillion, the survey showed. 'Hong Kong is gaining more clout than ever as a leading international hub for asset and wealth management, propelled by strong fund inflows, financial innovation and a growing talent pool,' said Christina Choi, executive director of investment products at the SFC. Hong Kong is gaining more clout than ever as a global hub for asset and wealth management, the Securities and Futures Commission says. Photo: Shutterstock Images The inflows preceded a robust year for investors in Hong Kong's financial markets. The Hang Seng Index has rallied 25 per cent so far this year to rank among the world's best-performing stock benchmarks. A stock market re-rating fuelled risk appetite and boosted demand for initial public offerings (IPOs), helping the city rise to the top of the global league table, according to industry data.


Korea Herald
5 days ago
- Business
- Korea Herald
Hybe chairman referred to prosecution over alleged unfair trading
Financial authorities on Wednesday referred Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, to the prosecution over alleged fraudulent securities transactions related to the company's listing, officials said. The Securities and Futures Commission under the Financial Services Commission decided to forward the complaint against Bang and three former Hybe officials for their alleged violation of the Capital Markets Act regarding the company's initial public offering. Bang is accused of misleading investors, including venture capital firms, in 2019 into believing that Hybe's IPO would be delayed and inducing them to sell their shares to a special purpose company (SPC) established by a private equity fund created and funded by Hybe executives. Investors sold their shares to the SPC, but financial authorities determined that Hybe was, at the time, already in the process of preparing for its listing. After the company went public, the SPC sold its shares, and Bang reportedly received 30 percent of the profit from the share sale in accordance with a prior shareholder agreement. "We plan to actively cooperate with the prosecution's investigation to thoroughly uncover the allegations surrounding this high-profile case," the SFC said. "Any violations found will be thoroughly investigated and strictly punished." Hybe earlier apologized for the allegations related to the IPO process, while claiming that the listing was carried out in compliance with relevant laws and regulations. (Yonhap)
Business Times
5 days ago
- Business
- Business Times
Hong Kong wealth, fund assets hit HK$35.1 trillion as inflows surge
[HONG KONG] Hong Kong's assets under management across its asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.7 trillion) as inflows surged last year, underscoring a recovery in the Asian financial hub. Net fund inflows jumped 81 per cent to HK$705 billion across the industry in 2024, according to a survey conducted by the Securities and Futures Commission. In particular, inflows for the asset management and fund advisory business soared 571 per cent to HK$321 billion. Assets for private banking and wealth rose 15 per cent to HK$10.4 trillion, boosted by net inflows of HK$384 billion. For the city, it is a stark reversal from the Covid period, when Hong Kong was grappling with an exodus of people and mainland money was moving to Singapore. Hong Kong has been stepping up efforts to attract wealthy with tax concessions and residency plans. The city's equity benchmark is trading near its highest level in over three years, boosted by increased optimism towards technology stocks and strong demand from mainland investors. 'Hong Kong is gaining more clout than ever as a leading international hub for asset and wealth management, propelled by strong fund inflows, financial innovation and a growing talent pool,' said Christina Choi, the SFC's Executive Director of Investment Products. Hong Kong-domiciled funds authorised by the SFC recorded net fund inflows of HK$163 billion in 2024, followed by HK$237 billion in the first five months of 2025. This year, 1,237 firms took part in the SFC's annual survey, including asset managers, private banks and insurance companies. BLOOMBERG