Bang Si-hyuk, the chairman of Hybe, is facing scrutiny over earning approximately 400 billion won through undisclosed IPO agreements with private equity firms during the company's 2020 listing.

The agreements involved several key private equity funds:

• STIC Investments (3.46 million shares acquired in 2018)
• Eastone Equity Partners
• Neumain Equity

These agreements included a 30% profit-sharing clause if the IPO succeeded, which wasn't disclosed during the listing process. Securities firm representatives maintain that these were private agreements between shareholders that didn't require disclosure, as they didn't harm general shareholders.

Key trading details from the IPO:

• First day trading: 11.17 million shares
• STIC's sales: 1.7% of total volume
• Stock price surge: 150% above offering price (135,000 won)
• Week one decline: 60% drop

Industry insiders explain that the agreements were made considering BTS's expected military service, with private equity firms requesting put options as a safeguard. Bang chose to handle these options through personal shares to protect the company.

While multiple law firms deemed the agreements legally sound during preliminary reviews, the controversy has sparked discussions about transparency in high-profile IPOs. The scrutiny continues as regulatory bodies assess the implications of these undisclosed agreements.

Additionally, Hybe shares have recently been affected by girl group NewJeans' announced departure from Hybe's Ador, following former Ador head Min Hee-jin's exit.

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