It looks like the Fair Trade Commission has its eye on HYBE Labels. The FTC has decided to launch an official investigation into whether the company falsified important documents.
Fair Trade Commission Suspects HYBE of Submitting False Data
On June 24, 2024, Korean media reported that the FTC has launched an official investigation into HYBE. The investigation aims to scrutinize the company for potentially omitting or falsifying data regarding the relatives of its founder and chairman, Bang Si Hyuk.
As HYBE recently achieved conglomerate status, it is legally obligated to disclose information about the family members and their associated companies of its executives. The FTC’s concerns center on whether HYBE failed to accurately report the scope of Bang Si Hyuk’s relatives, the companies they own, and other affiliates. An official from the FTC stated that discrepancies were noted when comparing publicly available data on the HYBE shares held by these relatives.
[Exclusive] FTC Investigates HYBE for Alleged Data Omission and Falsification
"The FTC is also monitoring Bang for any potential unfair practices, such as preferential business deals with subsidiaries where his relatives are shareholders."https://t.co/NK01jKpKhK— P (@YOONSOUNG) June 24, 2024
The FTC’s investigation will delve into the accuracy and completeness of the information submitted by HYBE. The omission or falsification of such data is considered a serious offense, particularly for conglomerates, as it can obscure the true financial and operational scope of the company. The scrutiny includes a detailed examination of the familial connections and business interests of Bang Si Hyuk’s relatives to ensure full compliance with regulatory requirements.
HYBE’s designation as a conglomerate in May 2024 underscores its substantial influence and reach within the entertainment industry. This status also brings increased regulatory oversight, aimed at maintaining transparency and fair competition. The investigation by the FTC highlights the importance of accountability and accurate reporting for large corporations.
As the investigation progresses, HYBE will need to cooperate fully with the authorities to clarify any misunderstandings or inaccuracies. The outcome of this probe could also have significant implications for the company’s governance practices and its public image. Observers within the industry and the financial sector will also be closely monitoring developments, given HYBE’s prominent position and the potential repercussions of the investigation’s findings.