SEOUL, July 9 — Founder and chairman of K-pop agency Hybe, Bang Si-hyuk, is likely to face prosecution over charges of fraudulent securities transactions.
Yonhap reported that South Korea’s Financial Securities Commission (FSC) have filed a criminal complaint against Bang for irregularities concerning a pre-IPO stock deal.
This is over claims that Bang had misled early Hybe shareholders by denying there were plans for an IPO.
Bang is said to have profited by 200 billion Korean won (RM618.2 million) via a private equity fund tired to Hybe insiders.
Besides Bang, three current and former executives linked to the scheme are also likely to be be charged.
In response to the reports, Hybe has put out a statement vowing cooperation with investigators.
Hello, this is HYBE.We sincerely apologize for causing concern with the recent news related to our company’s listing process.Regarding the current issues being raised, we are actively cooperating with the financial authorities and the police by submitting detailed explanations and relevant materials to verify the facts.Even if the process takes time, we will thoroughly clarify that our IPO (initial public offering) at the time was conducted in full compliance with laws and regulations.Thank you.
A final decision on the possible charges will be made at an SFC meeting scheduled for next Wednesday.
