Latest news with #FinancialServicesCommission
Korea Herald
6 days ago
- Business
- Korea Herald
BTS producer becomes first tycoon referred to prosecution under new president's toughened financial oversight
Hybe says it will actively clarify Bang Si-hyuk's suspicions to regain trust South Korea's financial regulators have referred Hybe Chairman Bang Si-hyuk to the prosecution on charges of fraudulent trading, accusing him of misleading shareholders during the company's initial public offering and profiting nearly 400 billion won ($287.6 million) in the process. This marks the first time under the Lee Jae Myung administration that authorities have taken such strong disciplinary action against the head of a major conglomerate. Regulators reportedly gave Bang an unusual opportunity to appear in person and explain himself, but he declined to attend. The Financial Services Commission's Securities and Futures Commission held a regular meeting Wedneday and announced that it had referred Bang and former Hybe executives to prosecutors on suspicion of violating the Capital Markets Act, particularly its ban on unfair trading practices. A referral to the prosecution is the most severe action financial regulators can take against an individual accused of violating the law, in addition to administrative penalties. Under the Capital Markets Act, a person who gains or avoids losses of over 5 billion won through unfair trading may face a prison term of five years to life. 'The suspects circumvented the lock-up period meant to prevent major shareholders from offloading shares immediately after listing, and dumped their shares on the market for profit. The nature of this violation is particularly serious,' a financial authority official said via local media outlet. 'The stock price plunged afterward, causing significant harm to ordinary retail investors.' Hybe said it would actively work to clarify the suspicions and restore market trust. 'It is unfortunate that the financial regulators did not accept the major shareholder's explanation during the Financial Supervisory Service's investigation, in which he made clear he did not pursue personal gains based on the company's IPO,' Hybe said in a statement sent to The Korea Herald on Thursday. 'Nevertheless, we respect the decision and will do our utmost in the upcoming investigation to actively address the allegations and recover the trust of the market and our stakeholders,' the company added. According to authorities, Bang allegedly deceived early investors into selling their shares by falsely claiming that Hybe's IPO prospects in 2019 were bleak. He is also believed to have signed a private agreement with a private equity fund that had acquired a large stake in the company, pledging to share 30 percent of any future gains from selling his shares — eventually profiting nearly 400 billion won. In response to this type of misconduct, the Korea Exchange revised its IPO due diligence checklist late last year, adding requirements for underwriters to inspect contracts between shareholders and assess risks to investor protection.
Korea Herald
6 days ago
- Business
- Korea Herald
BTS producer becomes first tycoon referred to prosecution under Lee's toughened financial oversight
Hybe says it will actively clarify suspicions to regain trust South Korea's financial regulators have referred Hybe Chairman Bang Si-hyuk to the prosecution on charges of fraudulent trading, accusing him of misleading shareholders during the company's initial public offering and profiting nearly 400 billion won ($287.6 million) in the process. This marks the first time under the Lee Jae Myung administration that authorities have taken such strong disciplinary action against the head of a major conglomerate. Regulators reportedly gave Bang an unusual opportunity to appear in person and explain himself, but he declined to attend. The Financial Services Commission's Securities and Futures Commission held a regular meeting Wedneday and announced that it had referred Bang and former Hybe executives to prosecutors on suspicion of violating the Capital Markets Act, particularly its ban on unfair trading practices. A referral to the prosecution is the most severe action financial regulators can take against an individual accused of violating the law, in addition to administrative penalties. Under the Capital Markets Act, a person who gains or avoids losses of over 5 billion won through unfair trading may face a prison term of five years to life. 'The suspects circumvented the lock-up period meant to prevent major shareholders from offloading shares immediately after listing, and dumped their shares on the market for profit. The nature of this violation is particularly serious,' a financial authority official said via local media outlet. 'The stock price plunged afterward, causing significant harm to ordinary retail investors.' Hybe said it would actively work to clarify the suspicions and restore market trust. 'It is unfortunate that the financial regulators did not accept the major shareholder's explanation during the Financial Supervisory Service's investigation, in which he made clear he did not pursue personal gains based on the company's IPO,' Hybe said in a statement sent to The Korea Herald on Thursday. 'Nevertheless, we respect the decision and will do our utmost in the upcoming investigation to actively address the allegations and recover the trust of the market and our stakeholders,' the company added. According to authorities, Bang allegedly deceived early investors into selling their shares by falsely claiming that Hybe's IPO prospects in 2019 were bleak. He is also believed to have signed a private agreement with a private equity fund that had acquired a large stake in the company, pledging to share 30 percent of any future gains from selling his shares — eventually profiting nearly 400 billion won. In response to this type of misconduct, the Korea Exchange revised its IPO due diligence checklist late last year, adding requirements for underwriters to inspect contracts between shareholders and assess risks to investor protection.
Reuters
7 days ago
- Business
- Reuters
South Korea financial regulator refers HYBE K-pop agency chair Bang for investigation, Yonhap says
SEOUL, July 16 (Reuters) - South Korea's financial regulator, the Financial Services Commission, has referred the chairman of K-pop agency HYBE to prosecutors for investigation of his activities during the company's stock market listing, Yonhap News Agency reported on Wednesday. The commission alleged that, ahead of the 2020 IPO, Bang Si-hyuk and three other executives "deceived" investors into selling their shares to an investment company they controlled and eventually profited from share sales after the listing, the Yonhap report said. The Financial Services Commission did not answer telephone calls seeking comment. HYBE said in a statement to Reuters that it regretted that the explanation by the "largest shareholder" - referring to Bang - to financial authorities that "he did not pursue personal gain on the premise of an IPO" was not accepted. "While we respect the financial authorities' decision, we will do our best to proactively clarify any related speculations in the upcoming investigation to restore the trust of the market as well as our stakeholders," it said. HYBE manages the global hit boy band BTS.
Bloomberg
7 days ago
- Business
- Bloomberg
Billionaire Hybe Founder Said to Face Probe Over IPO Disclosures
Bang Si-hyuk, the billionaire founder of BTS-agency Hybe Co. Ltd. faces investigation by South Korean prosecutors for allegedly misleading investors ahead of its 2020 IPO. The Financial Services Commission referred the largest shareholder of an unidentified company and its former executives on allegations of deceiving investors and violating trading practices. While the FSC did not name the probe's targets in its statement, a person familiar with the investigation told Bloomberg News the company in question was Hybe.
Coin Geek
14-07-2025
- Business
- Coin Geek
South Korea's central bank fights for stablecoin oversight
Getting your Trinity Audio player ready... South Korea's central bank is lobbying for more involvement in stablecoin regulations as the government ramps up its push to launch won-backed stablecoins. The Bank of Korea (BOK) recently submitted a proposal to the government's policy planning committee to have all relevant financial watchdogs involved in overseeing any issuance of a won-backed stablecoin. BOK proposed that a 'pan-governmental regulatory response is necessary. A policy body consisting of relevant authorities should be considered,' reports the Korea Herald. The submission referenced the U.S. Stablecoin Certification and Review Committee, established under the new GENIUS Act. The committee reviews applications from interested issuers and recommends license approvals or denials. It's chaired by the Secretary of the Treasury, with the chairs of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) as members. If the BOK's proposal is adopted, it could give the central bank and any other member of the new committee the power to veto the issuance of a license to a stablecoin firm. The proposal would also restore the BOK's oversight over stablecoins, which it stands to lose if a new draft bill sails through parliament. The bill hands jurisdiction to the Financial Services Commission (FSC), although a separate bill recommends that the FSC consult with the BOK on crucial stablecoin decisions. The latest proposal signals a policy shift for the central bank, which has been against won-backed stablecoins for years. However, the President Lee Jae-Myung administration, which took over in June, has been pro-digital assets and has pressured BOK to align with its stance, local outlets say. Jae-Myung won the June snap election on campaign promises of transforming South Korea into a digital asset hub, with won-backed stablecoins among his key pledges. The BOK also wanted stablecoin issuance to be relegated solely to banking institutions, but this stance is now changing as well. In a recent interview with CNBC, Governor Rhee Chang-Yong noted that the regulator has received petitions from fintechs who want the issuance scope expanded beyond the regulated lenders. 'They [fintechs] have asked for the allowance of non-bank financial institutions to participate. Given this new demand, we need to recalibrate our plan,' he stated. The top bank is concerned about the implications of won-backed stablecoins on the country's capital flow management, he added. Unregulated won stablecoins could 'expedite easier transfer to dollar-denominated stablecoins and undermine some of our policies.' In some regions, like Europe, governments have promoted stablecoins pegged to local currencies to reduce dependency on the USD tokens. And while this would apply to South Korea as well, the governor worries that it might have the opposite effect by making it easier to convert won into USD tokens. Meanwhile, South Korean lenders and major fintechs are rushing to become pioneers in the issuance of local stablecoins. Woori Bank, Kakao Bank, Kookmin Bank, the Industrial Bank of Korea, and more have all filed stablecoin-related trademarks. Google Finance (NASDAQ: GOOGL) data shows that the banks that applied for the trademarks had recorded a 20% increase in stock value. Kakao Bank, for instance, recorded a 19.3% rise in stock price the day after applying for the trademarks. Hong Kong to issue fewer than ten stablecoin licenses In Hong Kong, over 40 companies are set to be locked in a fierce competition for a limited number of stablecoin issuer licenses starting next month, local reports say. Hong Kong's stablecoin regulations have been hailed as the most progressive globally, with the city-state welcoming the world's first dedicated stablecoin act in May. However, only a handful of companies will obtain the coveted license, Treasury Secretary Christopher Hui has revealed. In an interview with a local outlet, Hui revealed that the number of licensed issuers will likely be 'in the single digits,' at least for this year. The city's financial regulator, Hong Kong Monetary Authority (HKMA), will open the licensing application process on August 1, when the Stablecoin Ordinance officially takes effect. Over 40 companies have expressed interest in the license, but according to Hui, only a handful will be successful in their quest. Source: Wu Blockchain Local reports say that the HKMA will prioritize the major financial and tech firms in Hong Kong and China, with startups and smaller firms set to miss out. Some of the giants expected to apply include China's Ant Group and (NASDAQ: JD) and a consortium comprising Standard Chartered (NASDAQ: SCBFF) and Animoca Brands. Watch | Spotlight On: Centi Franc—the truly stable stablecoin title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
