According to HYBE (the unit managing BTS) on July 3, Korean time, Chairman Bang Si Hyuk was summoned by the Financial Supervisory Authority of Korea (FSS) for questioning around the end of June. The HYBE Chairman is currently facing accusations of fraudulent and unfair transactions under the Capital Market Act.
Regarding the questioning, HYBE stated, "Bang Si Hyuk answered all questions honestly and sincerely".
Last year, it was alleged that Bang Si Hyuk had pocketed about 400 billion won (equivalent to 294 million USD) through a secret shareholder agreement signed with HYBE shareholders before the company made its first public offering.
The deal is said to have allocated 30% of the profits these shareholders earned after IPO (IPO is an acronym for the phrase Initial Public Offering, meaning issuing shares to the public for the first time) to Bang Si Hyuk.
It is unusual for the company's largest shareholders to make personal profits through such deals signed before listing, and it shows that these deals are not reported in securities registration reports to FSS.
Responding to the allegations, HYBE responded to the media in November last year, "It's true that we have provided shareholders with the deal being mentioned before IPO. We do not believe that there was any illegal acts during the posting process".
Meanwhile, both the Financial Supervisory Agency and the South Korean Police have opened an investigation into the incident.
