The Fair Trade Commission is investigating HYBE for allegedly falsifying or omitting designation data.
On June 24, the Fair Trade Commission sent investigators to HYBE’s headquarters to gather evidence and seize data related to the alleged false designation.
HYBE is under investigation for allegedly withholding or falsifying information about the relatives of its founder and chairman, Bang Si Hyuk.
As a newly formed conglomerate, the entertainment agency is legally obligated to disclose the family ties and business affiliations of its top executives.
The Fair Trade Commission collects yearly data from select companies, including information on their affiliates, relatives, and executives. As HYBE’s assets exceeded 5 trillion won, it was designated as a large conglomerate and must now submit this data annually.
The regulatory body is probing HYBE after suspecting that the company’s annual reporting contained inaccurate or missing information.
When asked, an official from FTC refused to comment on the matter, saying, “We cannot confirm the matter under investigation, If there is any violation of the law, we will take strict action.”
Lastly, in May 2024, HYBE made history by becoming the first and only entertainment company in South Korea to achieve conglomerate status.
