According to industry sources on June 24th, the FTC has dispatched investigators to HYBE headquarters and is currently conducting an on-site investigation. HYBE is reportedly under investigation for suspicions of false or omitted information in the materials submitted to the FTC regarding its designation as a large business group.
Earlier in May, the FTC designated HYBE as a large business group. Accordingly, HYBE, as a publicly listed company, and the affiliated companies controlled by HYBE are required to disclose their shareholder structure and key management information to the capital market.
With the designation as a large business group, regulations on profit-taking by Chairman Bang, the founder of HYBE, also apply. Chairman Bang, who holds 31.8% of HYBE shares as the largest shareholder, has been designated as the “same person (controlling person)” along with the designation of HYBE as a large business group. Accordingly, the FTC is also monitoring for potential profit-taking by Chairman Bang. This is to prevent any favoritism towards companies where Chairman Bang’s relatives or related parties are shareholders.
An FTC official stated, “We cannot confirm whether an on-site investigation is taking place. If there are violations of the law, we will respond firmly.”
