He's not an attention seeker, these are serious allegations
"The person who said he'd expose HYBE and Bang Sihyuk held a press conference today, and it was more compelling than I expected"
Apparently, this is the same person who helped get Kim Jun-beom’s group arrested by reporting the Signal stock price manipulation case to the Southern District Prosecutors’ Office and the Financial Supervisory Service.
t/n: Signal Group's CEO Kim Jun-beom was arrested over stock manipulation and illegal company restructuring. In the 2015–2016 period, it expanded aggressively by buying or investing in multiple entertainment companies, including BigHit through convertible bonds.
It’s said that several months ago Bang Sihyuk made a monetary payment to Kim Jun-beom’s side in exchange for not converting convertible bonds related to Big Hit, and that there is a recorded audio file of this transaction.
Simply put:
There are suspicions that Bang Sihyuk violated foreign exchange transaction laws and may have been involved in overseas cryptocurrency money laundering,
and that there are paper companies and private equity forces connected to HYBE and Netmarble.
Call for a Strong Investigation
We strongly urge the public and the relevant authorities to take action.
What we are witnessing now is not the success story of an innovative company. Beneath the surface of Bang Sihyuk’s “HYBE empire” lies a persistent dark cartel connected to Kim Jun-beom of the former Signal Entertainment.
There are allegations of:
- fraudulent and unfair trading using designated audit information and deception of existing shareholders,
- collusion with insiders to obtain hundreds of billions of won in illicit profits and potential tax avoidance,
- abnormal contracts using artists as leverage and acts of breach of fiduciary duty,
- compensation worth about 30 billion won through affiliated family companies, and
- suspected overseas cryptocurrency laundering.
None of these can be dismissed as coincidences. They are serious criminal acts that directly violate the Capital Markets Act and the Foreign Exchange Transactions Act.
We strongly call on the financial authorities, prosecutors, and police to immediately launch a comprehensive and impartial investigation into HYBE, Netmarble, the private equity groups behind them, and the paper companies involved.
- collusion with insiders to obtain hundreds of billions of won in illicit profits and potential tax avoidance,
- abnormal contracts using artists as leverage and acts of breach of fiduciary duty,
- compensation worth about 30 billion won through affiliated family companies, and
- suspected overseas cryptocurrency laundering.
None of these can be dismissed as coincidences. They are serious criminal acts that directly violate the Capital Markets Act and the Foreign Exchange Transactions Act.
We strongly call on the financial authorities, prosecutors, and police to immediately launch a comprehensive and impartial investigation into HYBE, Netmarble, the private equity groups behind them, and the paper companies involved.
K-Enter BigHit Archive announces that it will submit to investigative authorities an audio recording allegedly showing that Chairman Bang Sihyuk provided financial compensation to Kim Jun-beom’s side in exchange for Signal Entertainment Group giving up its Big Hit Entertainment convertible bond conversion rights.
At the same time, it states that it will file complaints against Bang Sihyuk and Kim Jun-beom on charges including breach of fiduciary duty and violations of the Capital Markets Act.
To protect a transparent and fair capital market and the K-culture loved around the world, the truth must be revealed.
Thank you.
1. Alleged breach of fiduciary duty involving abandonment of massive profits and pledging a key asset (BTS)
In May 2015, Signal Entertainment Group acquired 6 billion won worth of convertible bonds issued by HYBE (then Big Hit Entertainment).
At that time, Chairman Bang Sihyuk, CEO of Big Hit, simultaneously served as an inside director of Signal, creating a clear conflict of interest.
In 2016, when HYBE was rapidly growing, if Signal had exercised the conversion rights it could have obtained about 31.58% of HYBE’s shares, producing hundreds of billions of won in profit (about 66 billion won at the time, potentially worth trillions today).
However, Signal suddenly gave up the conversion rights and instead accepted early repayment of only the 6 billion principal, an extremely irrational decision.
This raises strong suspicion that Bang made the decision to protect his control of HYBE, causing significant losses to both Signal and HYBE, which could constitute breach of fiduciary duty.
At the time, Bang was also in a position to know that the Financial Supervisory Service was investigating Kim Jun-beom for unfair trading, and that criminal proceedings were underway. The decision may have been made to avoid the scenario where Signal would become HYBE’s second-largest shareholder.
Such a repayment would have been difficult without coordination between Bang Sihyuk and Kim Jun-beom.
Controversial financing structure
The repayment funds were reportedly raised through a controversial method.
On May 26, 2016, Bang issued redeemable convertible preferred shares (RCPS) to entities such as WellBlink Limited, guaranteeing 8% annual compound returns.
The contract also included a controversial clause stating that if any BTS member left the group (except due to death), immediate redemption could be demanded.
Critics describe this as effectively using artists as collateral in order to defend management control and avoid dilution of Bang’s shares.
At the time, Big Hit Entertainment was already rapidly growing thanks to BTS, reporting 35.5 billion won in revenue and 10 billion wonn in operating profit in 2016, making such unfavorable investment terms unnecessary.
Nevertheless, the RCPS were issued under conditions highly favorable to WellBlink.
The claim is that Big Hit issued these shares to eliminate the management-control threat posed by Signal potentially acquiring 31% ownership through the convertible bonds.
As a result, it is alleged that:
- Signal’s minority shareholders suffered irreversible damage, while WellBlink received the opportunity to gain hundreds of billions of won in capital gains.
2. Allegations of shareholder deception using “designated audit” information
In 2019, HYBE began preparing for an IPO by applying for a designated audit, a required step for listing.
During this process, it is alleged that management misled existing investors.
For example, long-term investors such as Alpenroute Asset Management were allegedly told that there were no plans for an IPO, encouraging them to sell shares cheaply.
Meanwhile, WellBlink, whose earlier support had helped protect Bang’s control, allegedly benefited from knowledge of the designated audit application.
Shares sold cheaply by existing investors were later acquired by special-purpose companies created by private equity firms Eastone Equity Partners and NewMain Equity, including Mainstone LLC.
After HYBE’s IPO, these entities reportedly sold large quantities of shares, earning hundreds of billions of won in profits, and were then dissolved in 2021.
3. Alleged connections between fugitive Kim Jun-beom and private equity groups
Behind the private equity funds that made huge profits from HYBE’s IPO, the text alleges the shadow of Kim Jun-beom, the former controlling figure of Signal Entertainment who is reportedly currently a fugitive facing criminal charges.
For example:
- NewMain Equity, which earned hundreds of billions in profit,
- and MJ Holding Company, led by a close associate of Kim,
- both reportedly share the exact same address: Yulchon Building in Yeouido.
Additionally, the two companies were founded only 18 days apart in September–October 2019.
The text argues that these parallels suggest Kim’s network may have hidden behind private equity funds to profit from HYBE’s IPO.
It also claims that business rights related to HYBE artists were indirectly transferred as compensation for abandoning the convertible bonds.
For example, Vitro, which produced and distributed BTS light sticks and merchandise, allegedly passed through companies connected to Signal before eventually being sold to N2Tech, a listed company run by a close associate of Kim.
4. Allegations involving Netmarble and cryptocurrency transactions
The document claims the final stage of this “money game” leads to Netmarble, chaired by Bang Jun-hyuk, who is related to Bang Sihyuk.
It alleges that Netmarble F&C, a subsidiary, was used to provide compensation to individuals connected to Kim Jun-beom.
In 2022, Netmarble F&C purchased Ace Factory, founded by Kim associate Lee Sung-jin, for about 40 billion, creating roughly 39.7 billion in profits for sellers such as N2Tech and MJ Holding Company.
However:
within about a year the company wrote off 28.5 billion in goodwill, and after three years the company was sold for only 8 billion.
The document claims the final stage of this “money game” leads to Netmarble, chaired by Bang Jun-hyuk, who is related to Bang Sihyuk.
It alleges that Netmarble F&C, a subsidiary, was used to provide compensation to individuals connected to Kim Jun-beom.
In 2022, Netmarble F&C purchased Ace Factory, founded by Kim associate Lee Sung-jin, for about 40 billion, creating roughly 39.7 billion in profits for sellers such as N2Tech and MJ Holding Company.
However:
within about a year the company wrote off 28.5 billion in goodwill, and after three years the company was sold for only 8 billion.
The text claims the financing involved:
about 30 billion in loans to Lee Sung-jin backed by low-value real estate collateral,12 billion transferred as USDC stablecoin through Netmarble’s Singapore subsidiary (GC1 Labs), and an additional 18 billion loan.
The claim is that this was not merely a business failure but a deliberate accounting loss used to disguise delayed compensation, potentially involving capital flight and money laundering.
about 30 billion in loans to Lee Sung-jin backed by low-value real estate collateral,12 billion transferred as USDC stablecoin through Netmarble’s Singapore subsidiary (GC1 Labs), and an additional 18 billion loan.
The claim is that this was not merely a business failure but a deliberate accounting loss used to disguise delayed compensation, potentially involving capital flight and money laundering.
Netmarble is HYBE’s second-largest shareholder, and Bang Jun-hyuk and Bang Sihyuk are relatives,
Netmarble may have provided delayed compensation to the Signal group that helped defend Bang Sihyuk’s control of HYBE.
original post: here
1. It’s honestly creepy how quiet the media is about this. How can this happen? When the Min Heejin thing happened the whole world seemed to explode, the press went completely crazy about it, did these trash reporters all take drugs or something?
2. Even the Lee Jae-myung government invited HYBE’s artists, and journalists aren’t showing up at all… How is this right?
3. The president needs to make sure that stock manipulation completely ruins its perpetrators
4. The fact that this case surfaced right now, during President Lee Jae-myung’s administration, feels like a sign from heaven that Bang should be completely ruined
5. When even small things happen people always say “it worked because it’s Lee Jae-myung,” but now the president literally said beforehand that he would ruin people who manipulate stocks, and yet nothing is being done. Of course people are going to bring up Lee Jae-myung. Why treat that like we’re just political trolls?
6. Let’s see what Lee Jae-myung does
7. Maybe Lee Jae-myung is too busy meeting ILLIT
8. Why is HYBE so close to the government?
9. How long do we have to watch them mess up the entire K-pop industry and keep acting arrogant?
10. Can we investigate them already?
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