According to a relationship of Economic Daily Korea ON May 28thSouth Korea Financial supervision service (FSS) It is preparing for Refer to the case to public ministrieswith potential charges that could lead to Imprinting of life under the Capital Markets Act.
Bang Si-Hyuk deals with the risk of life sentence in the alleged equity fraud
At the center of the dispute is an agreement of 400 billion KRW (~ 290 million dollars) presumably orchestrated through misleading communications with the first investors.
The FSS states that Bang Si-Hyuk falsely assured these investors that Hybe had no plans for a public offer, pushing them to sell their actions to a Private Equity Fund (PEF) According to reports, founded by Bang’s Associate. In reality, Hybe was already progressing with the passages of the IPO, including the signature with Korea Ey as auditor IPO designated in November 2019.
Despite this formal step, Bang is said to have reassured the investors that no iPo was underway while he was secretly preparing for the list. The FSS believes that this constitutes “Fraudulent unfair trading” And he discovered that Bang reports Shared 30% of PEF’s investments profitsIntraseli 400 billion KRWa detail not disclosed In the Hybe’s IPO documents.
Hybe replied to the accusations, saying:
“All transactions were legally carried out following a thorough legal review.”
Hybe president under fire while the authorities discover the alleged manipulation of the IPO
However, according to the FSS reported substantial evidenceincluding signed contracts and official statements, showing that Hybe was actively preparing for an ipo while the selected shareholders were outlined. These actions, if demonstrated, represent a violation of transparency laws AND Regulations on securities.
Second Article 443 of the Capital Markets ActIf the financial gains from fraudulent trade exceed 5 billion KRW (~ 3.7 million dollars), the author of the crime could face Imprinting of life OR a minimum sentence of five years.
THE Investigation unit on the financial crime of the Seoul Metropolitan Police is also leading a Parallel investigationreporting the seriousness and symbolic weight of the case. The financial authorities have declared their intention to pursue severe punishmentStable a strong precedent for the corporate government in the Entertainment and Finance sectors of South Korea.
Being one of the most influential figures of K-pop and the architect behind the global success of Hybe, Bang Si-Hyuk’s legal battle will be expected to send shock waves through both the Entertainment industry AND capital markets in the same way.
