[theqoo] HYBE IS ALSO EXPECTED TO BE INVESTIGATED FOR OFFSHORE TAX EVASION, TRANSFER PRICING MANIPULATION, TAX HANDLING OF AFFILIATED IDOLS AND OVERALL STATUS OF INTERNAL TRANSACTIONS

On the same day, the National Tax Service (NTS) announced that it had launched tax audits into 27 corporations and individuals involved in stock market practices that harmed small shareholders. These include companies that released false disclosures to manipulate stock prices, so-called “hit-and-run corporate raiders,” and controlling shareholders of listed companies who used their dominance to extract private gains.

Specifically, the audit targets include:

- 9 cases of stock manipulators who inflated stock prices through false disclosures and then sold large volumes of shares for massive profits,

- 8 cases of corporate raiders who acquired sound companies using bonds, then took out loans against prime assets or sold off company assets, funneling funds under the guise of investments,

- 10 cases of controlling shareholders who abused their authority to infringe on minority shareholder rights.

The NTS stated that during the audit, it would utilize digital forensics (e.g., tracking financial accounts, document recovery, and document authentication), as well as information from foreign exchange records, the Financial Intelligence Unit (FIU), and law enforcement agencies.

Meanwhile, on the 16th, the Securities and Futures Commission under the Financial Services Commission held a regular meeting and filed a complaint against HYBE Chairman Bang Si-hyuk and former HYBE executives for violating Article 178 of the Capital Markets Act, which prohibits unfair trading practices.

Bang is accused of misleading pre-IPO shareholders into thinking HYBE’s listing would be delayed in order to buy their shares at lower prices, then profiting post-IPO. He is also suspected of selling shares he owned to a special purpose company (SPC) established by a private equity fund involving former HYBE executives.

Despite signing a shareholder agreement that would grant Bang 30% of the SPC’s profits from selling shares, the agreement and the relationship between the SPC and HYBE executives were allegedly concealed during HYBE’s IPO process in 2020.

Following the Securities and Futures Commission’s complaint, the Seoul Metropolitan Police Agency’s financial crimes unit raided HYBE’s headquarters in Yongsan on July 24.

An NTS official stated, “We cannot disclose specific information about the audit case. We ask for your understanding.”

Another official added that the audit will likely go beyond just looking at unfair stock trading by major shareholders and executives. It may also include:

- Tax evasion related to overseas profits from subsidiaries in the U.S., Japan, and Southeast Asia (including offshore tax evasion and transfer pricing manipulation),

- Whether taxes on affiliated artists have been appropriately handled, and

- The status of internal transactions between related parties and subsidiaries.

original post: here

1. Empty them all, make sure to make them pay 100x their illegal profit

2. This isn't just about rigging things, they are doing every illegal thing out there. So this is why they kicked out Min Heejin, because she didn't cooperate internally

3. Wow, they are seriously doing all sorts of things

4. Investigate them properly

5. I hope they get emptied clean

6. If they are under a special investigation, then they are 100% guilty

7. It's fascinating how there are always so little comments in articles concerning HYBE~ㅋㅋㅋㅋ

8. Finally, this pig f*cker will get his karma back. It took so long, f*ck

9. They might really end up being delisted

10. This is legendary. There's really nothing they haven't done

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