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[Exclusive] NTS Secures Materials on HYBE-Linked Eastone PE… Tracking a “₩400 Billion Side Deal”? – ③
http://www.fieldnews.kr/news/articleView.html?idxno=20563
Field News Reporter Tae Ki-won
The National Tax Service (NTS) is currently conducting a special (non-regular) tax audit into HYBE, and the investigation is expanding to private equity funds that reaped massive profits immediately after HYBE’s stock market debut.
According to Field News coverage on August 18, the NTS, after launching a tax investigation into HYBE headquarters on July 29, has recently begun securing documents related to multiple private equity funds, including Eastone Equity Partners (hereinafter Eastone PE), which has been identified as a key party in HYBE Chairman Bang Si-hyuk’s alleged “₩400 billion side deal.”
Chairman Bang is suspected of violating the Capital Markets Act through fraudulent transactions. In 2019, prior to HYBE’s IPO, he allegedly told existing investors, such as venture capital firms, that there were no plans to go public. Meanwhile, special-purpose companies (SPCs) established by private equity funds linked to him, including Eastone PE, acquired HYBE shares. After HYBE went public, Bang is reported to have received around ₩400 billion (approx. $300 million) in settlement from these funds.
Eastone PE purchased HYBE’s old shares from existing shareholders in 2019 and then sold them right after HYBE’s 2020 IPO, generating enormous profits, before closing down the following year. Police and financial authorities suspect that Eastone PE paid Bang a portion of these stock-sale profits under a concealed agreement, and they are investigating the matter.
Industry observers interpret the expansion of this audit as a sign that the NTS intends to closely examine Bang’s alleged side deal. With both police and the Financial Supervisory Service’s special judicial police already investigating, pressure on HYBE appears to