BTS’ meager HYBE IPO shares stir new concern amid Bang Si Hyuk’s 400 Billion KRW stock fraud probe

BTS and HYBE’s chairman, Bang Si Hyuk, is below investigation for insider trading, which has sparked quiet outrage. BTS fans are all over all over again questioning how small the neighborhood bought all around the firm’s wide IPO in 2020.

Whereas this has predominant dependable and monetary implications, it has furthermore reignited an emotional debate. Followers are now revisiting how small BTS bought when put next.

Sooner than the IPO, Bang Si Hyuk granted every BTS member around 68,000 HYBE shares. That’s 478,695 shares in complete for all 7 members. At the time, the shares were price about 64.6 billion KRW (roughly USD 46 million). Each and each member bought an estimated 9.2 billion KRW (approx. USD 6.7 million).

In 2021, three members, Jin, J-Hope, and RM, equipped half of their holdings. They earned between 1.8 billion and 4.8 billion KRW every. As of September 2023, BTS members became private shareholders. It’s unknown whether or not they quiet protect their long-established shares.

In line with supreme year’s inventory prices, those shares can also now be price about 15 billion KRW per member. That’s roughly USD 11 million every. Nonetheless, it doesn’t review to the a range of billions earned by Bang and others shut to him.

Plenty of alternative folks tied to the fairness fund furthermore reportedly profited. Some took home 100 billion to 200 billion KRW. This appealing gap in profit has angered many.

Why are fans inflamed over Bang Si Hyuk?

BTS is broadly viewed because the motive within the abet of HYBE’s global success. Followers insist it’s unfair that the neighborhood bought totally a part of the monetary reward. Many are now spirited Bang Si Hyuk’s conscientiously maintained image because the “father of BTS.”

They’re questioning how insiders walked away with hundreds of millions, while BTS bought what some name “breadcrumbs.”

HYBE Chairman Bang Si Hyuk’s Fragment Scandal

On Would perhaps 28, South Korea’s Monetary Supervisory Carrier (FSS) confirmed it is miles having a search for into Bang Si Hyuk for that you’d enlighten of monetary misconduct. In line with Newsen, Bang Si Hyuk suggested early HYBE shareholders in 2019 that the firm had no plans to paddle public. In line with that files, many equipped their shares.

But exact months later, HYBE moved ahead with its public itemizing. The shares those investors gave up ended up within the fingers of a non-public fairness fund. That fund changed into carefully tied to Bang himself. He had a contract making sure he would catch 30% of the fund’s make the lots of the IPO.

The consequence? Bang Si Hyuk reportedly earned around 400 billion KRW—roughly USD 300 million—after HYBE went public in October 2020.

The Monetary Supervisory Carrier (FSS) believes this is in a position to presumably also describe illegal insider trading. The case is for the time being below overview and would possibly perhaps presumably be handed to prosecutors for formal investigation.

Monetary experts demonstrate that executives over and over situation up favorable phrases earlier than an IPO. But when misinformation is enthusiastic, ethical and dependable boundaries are crossed.

As the investigation unfolds, the highlight is now not exact on Bang Si Hyuk. It’s furthermore on the wider machine—one where wide earnings over and over close at the tip, even after they’re built on the backs of worldwide stars admire BTS.

What is an IPO half?

When a firm wants to promote half of itself to the public for the predominant time, it most continuously known as an Preliminary Public Offering, or IPO.

At some stage in an IPO, the firm sells shares, which can presumably be minute items of possession within the firm. Folks that aquire these shares have an element of the firm.

This helps the firm earn money to grow and lets traditional other folks make investments in it as properly.

As an instance, HYBE, the firm within the abet of BTS, equipped shares to the public in 2020 all over its IPO. That’s when other folks can also aquire an element of HYBE for the predominant time.