HYBE issues official statement, pledges full cooperation with regulators amid IPO investigation.
Entertainment giant HYBE has broken its silence regarding the ongoing controversy surrounding its IPO process, vowing to fully cooperate with authorities investigating allegations of securities fraud.
On July 9th KST, HYBE released an official statement, saying, “We sincerely apologize for causing concern due to the recent news regarding our IPO process.”
The company continued, “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.”
This comes after reports surfaced that Bang Si Hyuk, HYBE’s founder and chairman, may be referred to prosecutors by the Financial Services Commission (FSC) on charges of fraudulent and unfair trading under the Capital Markets Act. He is suspected of misleading early investors into believing there were no IPO plans in order to facilitate a private equity fund deal that allegedly yielded him over KRW 200 billion (approx. USD 145 million) in profit.
The FSC’s Securities and Futures Commission (SFC) is expected to review the matter at its upcoming meeting on July 16th, with a potential referral to the prosecution under consideration.
HYBE’s statement signals its intent to defend the legality of its IPO while mitigating growing concerns from investors and the public alike.
SEE ALSO: HYBE chairman Bang Si Hyuk may face prosecution over undisclosed IPO profit scheme
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