[theqoo] [EXCLUSIVE] MIN HEEJIN "CHAIRMAN BANG TOLD ME THERE'S NO PLAN TO GO PUBLIC"

Chairman Bang Sihyuk of HYBE questioned over alleged fraudulent trading, reportedly told Min Heejin in 2019 “There are no plans to go public”

On the 15th, Bang Sihyuk, chairman of HYBE’s board of directors, was summoned and questioned by the Financial Crime Investigation Division of the Seoul Metropolitan Police in Mapo-gu, Seoul, over allegations of fraudulent and unfair trading under the Capital Markets Act. He is accused of deceiving investors by falsely claiming that Big Hit Music (HYBE’s predecessor) had no plans to go public, and of acquiring shares under that pretense.

It has now come to light that Bang also told Min Heejin, former CEO of ADOR, “there are no plans for an IPO” when he recruited her in 2019.

In a phone call with The Hankyoreh on the same day, Min said, “In January 2019, during an in-person meeting to discuss my contract, Chairman Bang told me, ‘We’re not planning to go public’ and proposed, ‘Cash is better than stock for incentives. Let’s replace it with a signing bonus instead.’”
She added, “I signed the contract based on his word, and others who were also trying to recruit me at the time were aware of this.” A signing bonus refers to a one-time cash incentive offered outside of base salary. Min officially joined Big Hit Music in July 2019 as Chief Brand Officer (CBO).
This statement was submitted as evidence in the ongoing lawsuit over a stock purchase option (put option) between Min and HYBE, which was heard at the Seoul Central District Court on September 11.

The statement in question from January 2019 came just three months before a private equity fund (PEF) management company, suspected of being formed by Bang’s close associates to secure investor share, was established. Financial and regulatory authorities suspect that this PEF was a “planned fund” created solely to profit from HYBE’s IPO.

In fact, two months after its founding, in June 2019, the fund began acquiring HYBE’s old shares, starting with 25 billion won (~$18.7 million) worth from a co-founder and executive vice president, Choi. Authorities are now investigating whether early investors, including Choi, sold their shares at a discount based on Bang’s claims that there were no IPO plans.

The asset management company that had accumulated shares sold them off intensively after HYBE’s IPO in October 2020, reaping nearly tenfold returns. During this process, the stock price plummeted by nearly 60% from its peak within a week, causing major losses for retail investors. About 30% of the profits from these sales, estimated at around 400 billion won (~ $300 million), ended up in Chairman Bang Sihyuk’s hands.
The "earn-out agreement" that guaranteed Bang’s profit from this deal was not reported to the Korea Exchange at the time of the IPO.

Contrary to Bang's claim that “there were no plans to go public,” evidence has emerged that HYBE had already begun preparing for an IPO. For example, HYBE applied to the Financial Supervisory Service (FSS) to appoint an external auditor for IPO purposes around September–October 2019 and signed the official contract in November. Appointing a designated auditor is a mandatory step in the IPO process.
An accountant with multiple IPO experiences said, “To formally begin the IPO process, companies must spend at least a year on preliminary preparations. If the designated auditor was appointed in November 2019, it’s reasonable to assume HYBE had plans for an IPO as early as 2018, or even earlier.”

HYBE has consistently claimed that there were no IPO plans in early 2019 and that preparations only began in earnest toward the end of that year. Regarding Min Heejin’s testimony, a HYBE representative stated, “As this was a personal conversation between Chairman Bang and Min, it is not something the company can verify at the corporate level.”

The police, who summoned Chairman Bang as a suspect, previously raided the Korea Exchange in Yeongdeungpo District, Seoul, in June and secured documents related to the IPO screening process. Last month, they also raided HYBE’s headquarters in Yongsan District.
Meanwhile, the Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against Chairman Bang in July, accusing him of unfair trading. The prosecution has since delegated the investigation to the special judicial police unit under the Financial Supervisory Service.

In response to the police summons, Bang’s side said, “The IPO was conducted in compliance with all relevant laws and regulations. We will fully cooperate with the investigation and provide a thorough explanation.”

source: https://n.news.naver.com/mnews/article/028/0002766478?sid=001

1. And the way they treated their only female executive like that is so transparent ㅎㅎ

2. Lets put him in jail 

3. People who say Min and Bang are the same people, please I beg you to live in reality

4. Haboongie will probably go and expose more of her Katalk in retaliation after

5. Why are some comments here pretending to not know what this means? He's saying there were no plans to go public,  if the timing doesn't add up, that could be a serious issue, but people are talking about it like it’s nothing... and apparently, she even submitted evidence...

6. Bang Sihyuk needs to pay for his crimes

7. The part-timers are here too ㅋㅋ

8. I seriously wonder how many journalists he paid and how many of them he brought with to golf

9. Min Heejin fighting 

10. So even the part-timers here can't shield this ㅋㅋ You guys sound like f*cking conservatives

New post

Next Post

✉ PC Stories