Due to allegations of 'fraudulent transactions,' Bang Si-hyuk, the chairman of HYBE, has conveyed his apologies to internal members. He also stated that he would clarify the facts through an investigation.
In an email sent to HYBE employees on the morning of the 6th, Bang noted, "Due to the prolonged time spent overseas in recent years for the music work of artists preparing for their comebacks and business expansions for the company's future, I would like to return home as soon as possible and prioritize the authorities' investigation procedures over urgent tasks and business meetings."
He is facing allegations (of fraudulent transactions under the Capital Markets Act) for having informed existing HYBE investors, including venture capitalists, that there were no plans for an initial public offering before HYBE's listing in 2019, while facilitating the sale of equity to a special purpose corporation (SPC) established by a private equity fund with which he is associated. The police conducted a search at HYBE's headquarters in Yongsan, Seoul, on the 24th of last month.
The Securities and Futures Commission, under the Financial Services Commission, also reported Bang to the prosecution on the 16th of last month. The FSS, which operates under the Southern District Prosecutor's Office, is also investigating the same matter. The National Tax Service has also initiated a tax investigation against HYBE last month.
Bang explained, "As I have detailed the circumstances at the time of the listing during the investigation by the financial authorities, I will sincerely cooperate in the forthcoming investigation and explain everything again." He added, "I expect that the facts will also be clarified through this process and I will humbly await the authorities' judgment."
He further added, "I know better than anyone that I cannot allow my personal issues to continue to burden the company and the industry."
This is the first time Bang has directly addressed his allegations. He mentioned, "Given the various situations that have continued since last year, along with my recent personal matters, my company and name have been mentioned in negative news repeatedly," and added, "As a founder and chairman, I feel a heavy sense of responsibility for causing concern, and first and foremost, I sincerely apologize to all members who may have felt uncomfortable due to this situation."
He continued, "Since this began with the great dream and sense of mission to advance the music industry, I have proudly done my best to be upright in that process," yet he humbly reflected, "However, at times, that confidence may have appeared as arrogance. I am thoroughly examining whether there were shortcomings or negligence that I overlooked during the growth process."
He also stated, "To ensure that my personal issues do not become an obstacle to your talents, capabilities, and spirit of challenge, I will do my best to explain and resolve this entire situation," adding, "I will not forget that my role is to firmly ensure that you can focus solely on creation and business in your respective positions."