Hybe chairman referred to prosecution over alleged unfair trading
The Securities and Futures Commission under the Financial Services Commission decided to forward the complaint against Bang and three former Hybe officials for their alleged violation of the Capital Markets Act regarding the company's initial public offering.
Bang is accused of misleading investors, including venture capital firms, in 2019 into believing that Hybe's IPO would be delayed and inducing them to sell their shares to a special purpose company (SPC) established by a private equity fund created and funded by Hybe executives.
Investors sold their shares to the SPC, but financial authorities determined that Hybe was, at the time, already in the process of preparing for its listing.
After the company went public, the SPC sold its shares, and Bang reportedly received 30 percent of the profit from the share sale in accordance with a prior shareholder agreement.
"We plan to actively cooperate with the prosecution's investigation to thoroughly uncover the allegations surrounding this high-profile case," the SFC said. "Any violations found will be thoroughly investigated and strictly punished."
Hybe earlier apologized for the allegations related to the IPO process, while claiming that the listing was carried out in compliance with relevant laws and regulations. (Yonhap)
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