A key figure of HYBE and dance instructor for BTS has been fired after embezzlement and stealing billions of won
According to IT Chosun’s investigation on the 17th, HYBE disciplined and dismissed Mr. A in September of this year on charges of fraud and embezzlement.
A is accused of embezzling tens of millions of won from HYBE’s funds, as well as extorting and not returning tens of billions of won from composers, choreographers, and businesspeople related to HYBE. In this process, he is known to have stolen the identity of HYBE and received money under the pretext of investing in goods (MD) or using songs.
The amount embezzled by A from victims is estimated to be over 5 billion won (close to 4 million USD) as of November 17.
As soon as HYBE became aware of A’s misconduct, it conducted an investigation into the damage caused to the company with the help of an external law firm. Based on the investigation results, HYBE excluded Mr. A from his duties, dismissed him through the personnel committee, and simultaneously filed a criminal complaint against him.
Meanwhile, some criticize HYBE’s internal audit system, arguing that it is flawed. Althoug A embezzled tens of billions of won using HYBE’s name for an extended period, HYBE did not detect it. While HYBE has experienced rapid growth over the years, it has been relatively negligent in establishing a system to prevent ethical misconduct by employees.
Regarding this, HYBE has stated its position that it will thoroughly manage its internal affairs to prevent recurrence.
In addition, HYBE has informed the victims that it has disciplined and dismissed A and submitted a criminal complaint. The company is also guiding the victims to submit a criminal complaint to the investigating agency responsible for dealing with A, so that they can recover damages through individual lawsuits.
“To prevent the recurrence of such incidents, we will strengthen professional ethics education, anti-corruption, and governance systems such as fair trade, and enhance internal control systems”, HYBE said in a recent statement, and also emphasized that it strictly prohibits employees from using internal information, positions, or duties to gain personal benefits and is committed to preventing fraudulent activities by regularly notifying the public of fraud prevention measures.
Source: IT Chosun, Koreaboo
