HYBE Promises Full Cooperation In Ongoing Financial Fraud Investigation Being Held Against It

The  K-pop entertainment company, HYBE,  has come under hot water for allegedly committing financial misconduct. Now, the company has addressed the escalating controversy around its initial public offering (IPO). Bang Si Hyuk, the CEO of the company, is currently being investigated for securities fraud. In a statement issued on July 9th, HYBE addressed the accusations and promised their complete cooperation and transparency during the ongoing inquiry.

In their statement, the Korean entertainment powerhouse stated, “We sincerely apologize for causing concern due to the recent news regarding our IPO process.” It further added, “We are actively cooperating with financial regulators and the police by providing detailed explanations and relevant materials related to the matter. Although the process may take some time, we will do our best to clarify that the IPO was conducted in full compliance with laws and regulations at the time.”

Why Are HYBE And Bang Si Hyuk Getting Investigated?

The controversy first began after reports suggested that Bang Si Hyuk may be referred to prosecutors by the Financial Services Commission (FSC). In addition to reportedly planning a private equity fund deal that brought him over KRW 200 billion in profits (₹1,240 crore), Bang Si Hyuk is also suspected of deceiving early investors by denying any plans for an initial public offering (IPO). If confirmed, these acts would be considered violations of the Capital Markets Act, specifically unfair and fraudulent trading. The Securities and Futures Commission (SFC) of the FSC is now reviewing the matter and is planning to meet on July 16. 

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HYBE’s statement indicates an effort to maintain investor and public confidence as the company manages to handle regulatory scrutiny.  Being one of the biggest entertainment corporations in South Korea, HYBE’s response to these allegations is projected to have a significant impact on the financial and entertainment industry of the country.

Also Read: BTS’ Company HYBE And Its Founder Bang Si Hyuk Currently Under Investigation For Financial Fraud