Hybe Chairman Bong Si-hyuk Accused of Failing to Disclose Profits Worth 200 Billion Won…Press Conference Scheduled for March 6

YouTuber A, who has been exposing allegations of fraudulent transactions by HYBE Chairman Bong Si-hyuk, will hold a press conference at 5 p.m. on March 6. The speaker plans to reveal specific documents detailing accusations that the chairman deceived existing investors about the absence of an IPO plan prior to the company’s listing, as well as failing to disclose profits from share transactions through private equity funds (PEFs). Financial authorities have determined that Chairman Bong Si-hyuk received approximately 200 billion won in such profits.

HYBE was preparing for an IPO by applying for a designated auditor, a required step before listing. However, during the same period, Chairman Bong Si-hyuk told existing investors and venture capital firms that there were no plans for an IPO. Believing him, those investors sold their shares in HYBE to a PEF founded by his acquaintance.

Chairman Bong Si-hyuk signed a contract agreeing to receive 30% of the profits from those share sales but failed to include this detail in HYBE’s securities filing. The PEF sold a large portion of HYBE’s shares immediately after the listing, and according to financial authorities, Chairman Bong Si-hyuk received approximately 200 billion won in profits as per the contract.

Such actions constitute fraudulent transactions. If profits of 5 billion won or more are identified, the perpetrator could face imprisonment of over 5 years or even life imprisonment, along with a fine equal to 3 to 5 times the amount of profit. If all 400 billion won in illicit gains are considered problematic, a fine of at least 1.2 trillion won would be imposed.

The press conference will feature A, the operator of the YouTube channel “K-Enter BigHit Archive,” along with his attorney. A’s team stated, “Through this press conference, we plan to fully disclose all the serious illegal activities that occurred during Chairman Bong Si-hyuk’s management and capital transaction processes.” They added, “We organized this event to raise awareness about the severity of this matter in order to establish transparency and a healthy market order in the K-pop industry.” A Q&A session with the media present after the conference is also scheduled.

Meanwhile, Chairman Bong Si-hyuk recently announced plans to donate 711,534 shares of HYBE stock. This represents 1.65% of his total holdings and is worth approximately 270 billion won based on the closing price. The donation will be made free of charge to one individual other than HYBE. After the donation, Chairman Bong Si-hyuk’s ownership stake in HYBE will drop from 30.55% to 28.90%, but he will retain his status as the largest shareholder. HYBE plans to acquire 546,120 shares as its own shares, with the remaining 165,414 shares being donated to another person.