HYBE’s founder and chairman, Bang Si-hyuk, advised staff in a leaked inside e mail that he plans to return to Seoul to face authorities investigating allegations of securities fraud linked to the corporate’s 2020 preliminary public providing.
In an e mail to staff Wednesday (August 6), which was obtained by Forbes and The Korea Herald, Bang acknowledged that his prolonged absence overseas might have contributed to “confusion and frustration” throughout the firm.
Bang wrote: “Over the past 12 months, a lot has been stated and written about me within the press. More and more, I consider these occasions are inflicting confusion and concern for you, in addition to our artists, followers, and companions.”
The chief has been within the US overseeing enterprise, and has been centered on BTS’ reunion and different HYBE artists outdoors Korea, based on Forbes, which cited supply with connections to the corporate.
Bang advised workers: “I’ll return to Korea to totally and transparently work with investigators and put these allegations to relaxation.”
“Over the past 12 months, a lot has been stated and written about me within the press. More and more, I consider these occasions are inflicting confusion and concern for you, in addition to our artists, followers, and companions.”
Bang Si-Hyuk, HYBE
He added: “Specifically, I really feel a deep sense of remorse realizing that our members and artists, who needs to be centered solely on their artistic {and professional} objectives, could be struggling due to this case.”
As MBW beforehand reported, Bang and three different executives on the firm have been referred to prosecutors in an investigation of alleged “unfair buying and selling” in reference to the corporate’s IPO.
In line with Korea Financial Every day, regulators are probing whether or not Bang enriched himself unjustly by deceptive HYBE buyers, together with enterprise capital corporations, into believing that the corporate’s 2020 IPO could be delayed.
Regulators said that the IPO plans have been really on observe, with HYBE even hiring an auditor. Nonetheless, buyers, believing there could be a delay, reportedly offered their shares to a particular goal firm supported by HYBE’s executives.
“I’ll return to Korea to totally and transparently work with investigators and put these allegations to relaxation.”
Bang Si-Hyuk, HYBE
This firm offered its shares after the IPO, and Bang allegedly pocketed 30% of the income, or round 190 billion gained (USD $137 million on the present alternate fee), regulators say.
That’s a considerably decrease determine than the 400 billion gained that had been beforehand reported.
In line with The Korea Herald, fraudulent buying and selling that generates income or prevents losses exceeding 5 billion gained may end up in sentences starting from 5 years to life imprisonment.
Bang reportedly advised workers in his new e mail: “I care deeply for what we do and have immense respect for everybody at HYBE who has labored tirelessly to raise Okay-pop and Korea’s place in international tradition. It’s extraordinarily unfair that these occasions ought to overshadow your efforts.”
Shares of HYBE have been up almost 7% in Seoul buying and selling late Thursday afternoon (August 7).
On Wednesday (August 6), HYBE reported a 10.2% YoY bounce in Q2 income to 705.6 billion South Korean gained ($507.5m), whereas working revenue jumped 29% YoY to 65.9 billion gained ($47m).
You’ll be able to learn Bang’s full e mail, as reported by The Korea Herald, under:
To the HYBE group
Over the past 12 months, a lot has been stated and written about me within the press. More and more, I consider these occasions are inflicting confusion and concern for you, in addition to our artists, followers, and companions.
As founder and chairman, I really feel a deep sense of duty to do all the things in my energy to make sure nothing takes away from the hard-earned consideration and reward your work continues to obtain. I care deeply for what we do and have immense respect for everybody at HYBE who has labored tirelessly to raise Okay-pop and Korea’s place in international tradition.
It’s extraordinarily unfair that these occasions ought to overshadow your efforts. That’s why I’ll return to Korea to totally and transparently work with investigators and put these allegations to relaxation.
HYBE was the start line of a journey to comprehend my beliefs and goals as a creator. From the start, we sought to create an atmosphere the place creatives and artists may absolutely specific their distinctive voices and freely pursue their goals.
What started as a easy hope has change into the inspiration for artists, creators, and so many others within the trade. I’m deeply grateful that this dream has resonated with folks in every single place. That’s why these previous few months have been so painful.
I’ve tried to stay cautious with my phrases out of respect for ongoing authorized proceedings, but it has been tough not to reply to these allegations. Whereas I’ve as an alternative centered on supporting BTS and different HYBE artists and advancing key enterprise alternatives abroad, my continued time overseas has been extended. I perceive how my absence might have contributed to confusion and frustration.
By returning to Korea, will probably be simpler for me to totally cooperate with authorities to deal with these allegations and alleviate any stress or nervousness these occasions have precipitated our neighborhood. Specifically, I really feel a deep sense of remorse realizing that our members and artists, who needs to be centered solely on their artistic {and professional} objectives, could be struggling due to this case.
I’m dedicated to a swift decision to those issues, so that you could be concentrate on what you do finest: creating and sharing leisure and tradition that resonates world wide.
Whereas I navigate these occasions at residence, I wish to specific my infinite appreciation to all of you at HYBE who’ve continued to provide solely the best high quality work. Our group’s devoted efforts, our creators’ ardour, and our artists’ expertise are HYBE’s strongest development engine and the bedrock that sustains our firm.
Your work is what carries HYBE ahead. Thanks for giving your finest every single day—I’ll do the identical.
Sincerely,
Chairman Bang
Music Enterprise Worldwide
