The Fair Trade Commission (FTC) will further investigate HYBE despite the company’s claim that the omission of designated data was unintentional. This follows a correction report filed by HYBE, which described the omission as a “simple mistake.” The FTC’s investigation, if it uncovers intentionality and significant omission of data, could lead to criminal charges against HYBE Chairman Bang Si-hyuk.
The probe continues despite HYBE’s claims of a “simple omission” in data disclosure
On July 2, HYBE filed a correction report with the Financial Supervisory Service’s Electronic Disclosure System (DART). The report addressed the status of overseas affiliates in which the CEO’s family holds shares, citing a “simple omission.” HYBE disclosed ‘BEL AIR STRADELLA, LLC,’ a U.S. real estate company owned entirely by Bang Si-hyuk. Reports indicate that Bang Si-hyuk purchased a luxury mansion worth approximately 36.5 billion won (26.4 million dollars) through this company.
HYBE explained, “With the designation of large corporate groups subject to disclosure, the corporation also has an obligation to disclose. In practice, there was a simple omission, so we made a corrective disclosure.”
The FTC conducted an on-site investigation into HYBE on June 24, suspecting data omission for large corporations. Despite HYBE’s voluntary correction, the FTC plans to continue its investigation. An FTC official stated, “We plan to continuously uncover whether this was a simple omission, as HYBE claims, or a deliberate concealment.”
Min Hee Jin reveals that Bang Sihyuk asked her if she could ‘step’ on aespa.
However, she replied “that was never my goal.” pic.twitter.com/n7pouk2gkx
— Viral Takes (@viraltakes) April 25, 2024
If the investigation reveals that HYBE omitted additional affiliates, excluding their assets from calculations, it could mean avoidance of corporate group designation and engagement in unfair practices. Significant omissions could result in punishment.
HYBE’s voluntary correction came over two months late, beyond the 10-day window for such actions. A retroactive application is unlikely, as the enforcement decree takes effect on the 7th of next month. According to the Monopoly Regulation and Fair Trade Act, large corporate groups can face criminal charges for omissions or errors in data related to disclosure obligations. The FTC will review the missing data and HYBE’s explanations in their ongoing investigation.
