Prosecutors search HYBE's home... Former executive suspected of ”using undisclosed information” in South Korea

Prosecutors recently conducted a search of HYBE. According to the Korean legal community on the 29th, the Seoul Southern District Prosecutors' Office recently conducted an investigation into the use of undisclosed information by formerHYBE executive A.
According to the prosecution, in January 2021, HYBE (then Big Hit Entertainment) announced that Mr. A had been involved in a scandal involving the transfer of HYBE to YG Entertainment.
We obtained information in advance that YG PLUS would be investing in the company.
He is suspected of making a profit of 240 million won (approximately 25.3 million yen) by purchasing PLUS shares.
Regarding this, HYBE said, "We cooperated with a request from investigative authorities to provide documents regarding the actions of one former employee who has since left."
In addition, the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit is investigating the case of Pak Securities, which is suspected of violating the Capital Markets Act (fraudulent and unfair trading).
The day before, a search warrant was filed for HYBE's headquarters as part of an investigation into Chairman Ng Si-hyuk (HYBE's chairman). Currently, Chairman Bang is in the process of listing HYBE and has filed a "corporate public offering" with shareholders.
The company is accused of falsely explaining that it had "no plans for an IPO" while actually going ahead with listing the company on the stock market.
In 2020, before HYBE went public, he invested in a private equity fund founded by a friend of his.
The company signed a contract with the Public Equity Fund (PEF) to share 30% of the profits from the sale of its shares, and received approximately 400 billion won (US$402 million) as liquidation proceeds after the company's listing.
The PEF bought HYBE shares from existing investors, including institutional investors and venture capitalists, but the Financial Supervisory Service said it had not included the details in the document.
In 2019, the group secured evidence that Chairman Bang's side had told existing investors that "listing is currently impossible," but was actually pursuing an IPO by applying for designated audits, and launched a related investigation.
Police began investigating the allegations at the end of last year, and it is understood that they applied for a search warrant at the prosecutor's office last month, but the request was rejected.