HYBE’s Bang Si-hyuk May Face Criminal Punishment? Fair Trade Commission Continues Investigation
HYBE Chairman Bang Si-hyuk’s purchase of a luxury mansion will be investigated despite the company’s correction report.
A month after HYBE was investigated by the Fair Trade Commission (FTC) on charges of omission of designated data, it was confirmed that the Fair Trade Commission plans to continue its investigation despite filing a correction report stating that the matter was “simple omission.” If the Fair Trade Commission’s investigation reveals that there was “intentionality” and “significance” in the omission of data, HYBE Chairman Bang Si-hyuk, as the CEO, could face criminal punishment.
In particular, on August 2, according to the Financial Supervisory Service’s electronic disclosure system (DART), HYBE filed a correction report on July 26 for omitting the status of a foreign affiliate owned by the chairman’s family, citing a “simple omission.” They added the US.-based real estate company “BEL AIR STRADELLA, LLC,” which is 100% owned by Bang Si-hyuk.
It is reported that HYBE Chairman Bang Si-hyuk purchased a luxury mansion worth approximately 36.5 billion KRW (26.4 million USD) through this real estate firm. HYBE explained, “Due to the designation of the company as a large enterprise group subject to disclosure, the obligation to disclose this corporation also arose. It was a simple omission in the practical work, which we corrected.”
The Fair Trade Commission (FTC) designates disclosure-targeted enterprise groups every May. Groups with assets of 5 trillion KRW or more as of the end of the previous year are subject to this designation. This year, 88 enterprise groups (comprising 3,318 affiliates) were designated, including HYBE, marking the first inclusion of an entertainment company group.
The designated companies and their owners (including chairpersons) must disclose various obligations such as the company’s overview, financial status, status of foreign affiliates, and special relationship transactions by May 31.
The FTC conducted an on-site investigation at HYBE on June 24, suspecting omission in the large enterprise designation data. Although HYBE voluntarily corrected the omission, the FTC plans to continue its investigation. An FTC official stated, “We will continue to investigate whether this was a simple omission as claimed by HYBE or a deliberate concealment.”
Source: Naver
