HYBE Chairman Bang Si Hyuk, currently facing allegations of fraudulent practices during the company’s IPO process, has publicly addressed the matter for the first time and offered a formal apology to internal staff.
On the morning of August 6th KST, Bang Si Hyuk sent an email to all HYBE employees, stating, “With a series of events since last year, and now my personal matters added to them, both the company and my name have been repeatedly mentioned in negative news reports. I can only imagine the confusion, sense of loss, and concern that many of you—who take great pride in being part of HYBE—must be feeling. As the founder and chairman, I feel a deep sense of responsibility and sincerely apologize to all our members for the discomfort and worry caused by these circumstances.”
He continued, “I’ve been well aware of how much concern this has caused, yet the past few months have been painful for me as I was unable to respond swiftly to the allegations and controversies. I’ve also felt immense guilt over the possibility that our creators and artists, who should be free to focus solely on their craft and business activities, might suffer indirect consequences because of my personal issues. As a creator myself, this situation has been all the more distressing. Since an official investigation is underway, I’ve had to be cautious with my words and ask for your understanding regarding my silence.”
Bang further explained, “No one knows better than I do that I cannot allow my personal issues to continue burdening the company and the industry. Although I’ve had to spend extended periods abroad due to music projects and business expansions for our artists’ comebacks and the company’s future, I will soon return to Korea, temporarily setting aside urgent meetings and schedules, in order to fully cooperate with the authorities’ investigation. Just as I provided detailed explanations during the financial authorities’ probe, I will continue to do so and sincerely participate in the ongoing investigation. I believe the facts will be clarified through this process, and I will humbly await the authorities’ judgment.”
He added, “I am endlessly grateful to all HYBE members who have remained steadfast in their roles amid the confusion. Your dedication, the relentless pursuit of our passionate creators, and the brilliant work of our artists are the driving forces behind HYBE. The remarkable achievements we are making at home and abroad are only possible because of each and every one of your efforts. I have deep respect for your talent and sincerity in building a globally recognized content industry through the intangible asset of music.”
He concluded, “I will do everything I can to explain and resolve this matter so that my personal issues do not hinder your talent, capabilities, or spirit of challenge. I won’t forget that my role is to ensure that you can focus solely on your creative and business endeavors. Like all members of HYBE, I too will remain committed to the growth of music and our industry, with humility and constant reflection.”
Bang Si Hyuk, the founder of HYBE, is under investigation for allegedly deceiving early investors by stating there were no plans for an IPO back in 2019, only to later sell shares to a special purpose company (SPC) established by a private equity firm he was associated with. These actions fall under suspected violations of the Capital Markets Act regarding fraudulent and unfair trading practices.
The Securities and Futures Commission under the Financial Services Commission referred Bang to the prosecution on July 16th, and the National Tax Service also launched a tax investigation into HYBE on July 29th.
SEE ALSO: HYBE under intense police raid over Bang Si Hyuk’s alleged stock manipulation
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