The police searched the Hybe headquarters, the South Korean entertainment company behind Global Sensation Boy Band BTS, Thursday for unjust negotiation accusations.
The Raid took place at the Company’s Yongsan District Office in the Center of Seoul. This operation follows the assembly accusations that the founder and president of Bang Si-Hyuk, together with several managers, may have been involved in unjust trading practices and in error investors before the initial public offer of Hybe in 2020.
The Seoul Metropolitan Police Agency said the investigation Objectives states that Bang Si-Hyuk has deceived investors by saying that Hybe had not intended to become public at that moment. It is assumed that this information led the first investors to sell their actions. Subsequently, according to reports, Hybe proceeded with the IPO and it is said that Bang and the managers have obtained substantial profits, which are estimated at hundreds of billions of victories.
The financial regulator, the Securities and Futures Commission, initially filed a formal complaint a week before the Raid, claiming that Bang Si-Hyuk had violated the law on the capital of South Korea. The authorities affirm that the actions were sold to a company of special purposes linked to Bang Si-Hyuk and other former Hybe employees, who then benefited from the IPO. Investigators believe that the company founder has personally gained a significant part of the profits from this agreement.
Hybe recognized the Police Investigation and argued that the IPO was conducted in accordance with all the laws and regulations. The company said: “We will take the time necessary to demonstrate that the IPO has been performed in full compliance with the laws and regulations”, reaffirming their cooperation with the authorities for “research efforts”. Bang Si-Hyuk remains the most individual Hybe founder and the greatest shareholder.
This is not the first time that Hybe’s internal relationships are under control. At the beginning of this year, there were news that another former Hybe manager was under investigation for alleged insider trading that involves the actions of an affiliated company. This case was separated from the current survey focused on the activities before the debut of the company’s share market, but raised new questions about governance within the K-Pop power.
Hybe manages BTS and other popular acts and has quickly expanded all over the world in recent years. However, these investigations in progress on its founder and financial practices they put the company in intense public and regulatory observation. The police said that the research and revision of the registers will continue while examining if violations of the country’s capital markets have occurred or laws.
