On June 24th, industry sources reported that the FTC had sent investigators to HYBE headquarters and was currently conducting an on-site investigation. The company is allegedly being investigated for possible false or omitted information in the materials it had submitted to the FTC, which led to its designation as a large business group.
In May, the FTC identified HYBE as a major business group. As a result, both HYBE, a publicly traded company, and its affiliated companies under HYBE’s control are obligated to disclose their shareholder structure and important management information to the stock market.
As part of its classification as a large business group, regulations regarding profit-taking by HYBE’s founder and Chairman, Bang, also apply. Bang, who holds the largest stake of 31.8% in HYBE, has been identified as the “same person (controlling person)”alongside HYBE’s designation as a large business group. Consequently, the FTC is closely monitoring any potential actions by Chairman Bang to take advantage of his position. This precautionary measure is in place to avoid any favoritism towards companies in which Chairman Bang’s relatives or related parties hold shares.
The FTC official stated that they were unable to confirm whether an on-site investigation was being conducted. They further assured that any violations of the law would be met with a strong response.
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