Advertisment

HYBE Petitions for Investigation into Alleged Stock Trading Misconduct by Executives Amidst Management Conflict

HYBE, the entertainment powerhouse behind BTS, petitions for an investigation into alleged stock trading misconduct by executives, including Vice President ADOR and CEO Min Hee Jin.

author-image
By minal
New Update
HYBE Petitions for Investigation into Alleged Stock Trading Misconduct by Executives Amidst Management Conflict

HYBE Petitions for Investigation into Alleged Stock Trading Misconduct by Executives Amidst Management Conflict

Amidst a management conflict and escalating tensions, HYBE, the parent company of global phenomenon BTS, has filed a petition for an investigation into alleged stock trading misconduct by executives, including Vice President ADOR and CEO Min Hee Jin.

Advertisment

According to a report by Korea Economic Daily, HYBE is set to petition the Financial Supervisory Service for an investigation into violations of the Capital Markets Act, including the dissemination of rumors and the use of undisclosed information. The petition specifically targets ADOR executives, citing allegations of fraudulent transactions aimed at manipulating stock prices.

The investigation stems from Vice President ADOR's sale of 950 shares of HYBE stock, valued at 200 million won, on April 15. This sale occurred just before ADOR's management raised suspicions about HYBE's management, leading to concerns of insider trading. However, Vice President ADOR has refuted the allegations, stating that the stock sale was intended to raise funds for directors' down payments.

Additionally, HYBE alleges that CEO Min Hee Jin was aware of the company's stock price decline in advance and conspired to manipulate public opinion. The company plans to provide evidence, including chat room discussions, to support these claims during the ADOR audit.

The conflict between HYBE and CEO Min Hee Jin further escalated when HYBE filed a complaint against her and Vice President Shin for breach of trust. CEO Min Hee Jin has denied allegations of planning to usurp management rights and has criticized what she perceives as discrimination against NewJeans, a group under her leadership.

With an extraordinary general meeting of shareholders scheduled for May 31, tensions between HYBE and CEO Min Hee Jin are expected to continue as legal proceedings unfold. As the investigation unfolds, stakeholders eagerly await the outcome, which could have significant implications for the future direction of the entertainment powerhouse.

Advertisment
Advertisment
Latest Stories
Advertisment