At a time when the global expansion of K-pop is gaining momentum again, HYBE has found itself unexpectedly on trial. As a company that has produced global artists like BTS at the center of the industry, HYBE has responded to investigations by financial authorities and investigative agencies regarding suspicions surrounding shareholder agreements during the listing process.
Beyond simple corporate risk, amidst growing concerns about the impact of this controversy on the overall K-pop industry, HYBE has stated, "All processes complied with laws and procedures," taking a direct approach.
This suspicion revolves around the shareholder agreements made during the process of transferring shares held by early financial investors (former FI) to new investors (new FI) before HYBE (then known as Big Hit Entertainment) went public. The core of the controversy is that the agreement specifying that the chairperson of the board would acquire investor shares in case of a failed listing and guarantee certain revenues upon successful listing was not mentioned in the securities registration statement. Some have raised claims that such agreements could amount to fraudulent transactions that concealed the listing plan.
In response, HYBE said, "We have discussed various measures, including listing or attracting investment, with investors and have never denied or concealed the listing plan." They explained that they did not state there was no plan for listing, and that they informed most investors about their efforts in pursuing both listing and investment attraction.
Furthermore, they emphasized, "The former FIs who sold their shares were aware of the company's situation and strategic direction at the time, with the sales made according to their own judgment." The contract underwent legal review and is not subject to disclosure obligations.
However, financial authorities have announced plans to accuse HYBE's chairperson Bang Si-hyuk of fraudulent transactions under the Capital Markets Act, and HYBE expressed in an official press release on the 9th, "We regret causing concern with news related to our listing process."
They added, "We are actively cooperating in verifying the facts by submitting detailed explanations and materials regarding the current issues to financial authorities and police," noting, "Even if it takes some time, we will sincerely clarify that the listing was carried out in compliance with relevant laws and regulations."
Although facing unexpected variables, HYBE remains focused on its core role without being swayed. As a leading corporation that has been expanding the K-pop industry in the global music market, it is transparently addressing the allegations while also steadily pursuing scheduled artist activities and global projects.
The return of BTS, scheduled for next spring, along with ongoing artist development and content expansion around the world, in itself validates HYBE's direction and sustainability.
Meanwhile, there are rising voices in the industry suggesting that this situation could negatively impact the image of K-pop corporations in the global content market, underscoring that both corporations and authorities should remain committed to verifying essential facts while being wary of excessive distortion.
[Photo] OSEN DB, HYBE
[OSEN]