South Korean financial authorities plan to indict HYBE Chairman Bang Si Hyuk with prosecutors... HYBE side: ”We will faithfully demonstrate compliance with laws and regulations”

South Korean financial authorities are planning to file charges against Bang Si Hyuk, chairman of the major entertainment agency HYBE, with the prosecution on suspicion of fraudulent and illegal trading. The case is expected to be discussed at the Securities and Futures Committee under the Financial Services Commission.
According to financial authorities and the entertainment industry on the 9th, the Capital Market Investigation and Deliberation Committee, the deliberative body of the Securities and Futures Commission, announced last week that it had issued a resolution regarding the violation of the Capital Markets Act by HYBE Chairman Bang Si Hyuk.
The Securities and Futures Commission will discuss the matter at its regular meeting on the 16th. Indictment by the prosecution is the highest level of prosecution that can be imposed on individuals suspected of unfair trading.
A financial authority source told Yonhap News, "There is evidence that Chairman Ban has blatantly violated the Capital Markets Act, and we believe that this action needs to be taken seriously."
On the 9th, HYBE expressed regret, saying, "We apologize for causing concern with the news regarding our listing process."
They continued, "Regarding the current case, we are actively cooperating with the financial authorities and police in verifying the facts by submitting related materials along with detailed explanations.
"Even if it takes some time, we will faithfully demonstrate that the listing at that time was carried out in compliance with laws and regulations," he said.
The Financial Supervisory Service is investigating Chairman Bang for suspected fraudulent and improper transactions.
Late last month, Chairman Ban was summoned for questioning. In 2019, Chairman Ban deceived existing investors into thinking there were no plans for an IPO, and transferred his shares to a private equity fund set up by an acquaintance.
After that, the company signed a contract with the private equity fund to share 30% of the profits from the sale of the shares, and received about 400 billion won (about 43 billion yen) after the listing.
The agreement was not described in a securities filing.