The FTC Is Investigating HYBE And Korea’s Fair Trade Commission

(FTC) has begun an on-site inquiry into HYBE, a first-time entertainment company. According to Chosun Biz’s exclusive revelation, the FTC investigated HYBE’s headquarters on June 24. HYBE is under investigation for furnishing fraudulent or incomplete ‘conglomerate designation materials’ to the FTC. The FTC declared HYBE a conglomerate in May. Thus, HYBE, a publicly traded business, and its subsidiaries must disclose shareholder status and important management matters in the capital market. Chairman Bang Si Hyuk, HYBE’s founder, must follow conglomerate regulations against private interests. Chairman Bang, who owns 31.8% of HYBE, was named “same person (total owner)” along with the conglomerate classification. A FTC rep said, “We cannot confirm whether an on-site investigation is taking place,” but said “If there are any violations of the law, we will respond strictly.”