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Bang Si-Hyuk. (Photo = HYBE) |
[Alpha Biz= Reporter Kim Jisun] The Financial Supervisory Service (FSS) has launched a review to determine whether any legal violations occurred during the shareholder agreement process between HYBE Chairman Bang Si-Hyuk and private equity funds (PEFs) before HYBE's initial public offering (IPO).
On the 29th, an FSS official stated that the agreements between Chairman Bang, who was HYBE's largest shareholder at the time, and the private equity funds are "uncommon" and warrant further investigation. The review aims to assess potential legal responsibilities and the extent to which such agreements, which allocate profits among shareholders, impacted other investors.
According to financial industry sources, Chairman Bang reportedly entered into agreements with PEFs holding HYBE shares at the time of the IPO four years ago. These agreements stipulated that if the PEFs realized significant gains from selling their shares during the IPO, a portion of the profits would be shared with Bang.
The FSS is currently examining whether these agreements were legitimate and whether the failure to disclose them in the securities registration statement constitutes a legal breach.
The agency plans to analyze precedents and consult its disclosure review department to determine if the agreements required mandatory disclosure. If deemed necessary, the FSS may initiate an investigation into potential unfair trading practices to address concerns regarding the shareholder agreement process.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
