[Exclusive] Fair Trade Commission Conducts On-Site Investigation of HYBE for Omitted and False Information in Conglomerate Designation Data
The Fair Trade Commission (FTC) has begun an on-site investigation into HYBE, the first entertainment company to be designated as a conglomerate.
According to industry sources on the 24th, the FTC has dispatched investigators to HYBE's headquarters for an on-site investigation. HYBE is under investigation on suspicion of submitting false or omitted information in the 'data for designation of conglomerates' submitted to the FTC.
Last May, the FTC newly designated HYBE as a conglomerate. Consequently, HYBE, a listed company, and its subsidiaries controlled by HYBE must disclose shareholder status and major management information to the capital market.
Since HYBE is now designated a conglomerate, regulations on personal gains for the founder, Chairman Bang Si-hyuk, have also been applied. Chairman Bang, who holds a 31.8% stake in HYBE and is the largest shareholder, was designated as the 'same person (head of the group)' with this conglomerate designation. The FTC is also monitoring Chairman Bang for potential personal gains. This is to prevent favoritism towards subsidiaries owned by Chairman Bang's relatives.
An FTC official stated, "We cannot confirm whether an on-site investigation is taking place," but added, "If any legal violations are found, we will respond strictly."