71.2 F
Los Angeles
Sunday, July 21, 2024

FTC launches investigation into HYBE over faulty documents

Must read

- Advertisement -

Korea’s antitrust regulator launched an investigation into HYBE over allegedly faulty documents, according to local media reports.

The documents were related to mandatory annual filings that major conglomerates are obligated to submit, as the K-pop powerhouse was designated as one of “the large corporate groups” by the Fair Trade Commission (FTC) last month.

The FTC reportedly sent on-site investigators to the HYBE headquarters in Yongsan District, central Seoul, on Monday.

HYBE is alleged to have omitted or falsified information in mandatory filings submitted to the FTC.

HYBE’s headquarters in Yongsan District, central Seoul  [YONHAP]

In May, the fair trade regulator added HYBE to the list of large corporate groups with over 5 trillion won ($3.6 billion) in combined asset value, along with five other new additions for this year, which are subject to the stricter reporting duties and regulations applied to major conglomerates.HYBE is the first K-pop agency to make it onto the list.

Due to the new designation, HYBE is obligated to disclose shareholder compositions and matters concerning important decision-making in all of its subsidiaries. Its founder, Bank Si-hyuk, is also required to comply with stricter reporting rules regarding his relatives and the company’s executives, which are designed to prevent any unfair practices such as favorable treatment.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]