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

The agreements, signed with STIC Investments, Eastone Equity Partners, and Neumain Equity, included a 30% profit-sharing clause if the IPO succeeded. These arrangements were not disclosed during the listing process.

Key details of the controversy:

• STIC Investments acquired 3.46 million Hybe shares in 2018
• The agreements included profit-sharing clauses triggered by a successful IPO
• Legal advisors deemed it a private agreement that didn't require disclosure
• Stock price surged 150% on first trading day before falling 60% within a week
• STIC's sales represented only 1.7% of total trading volume

Industry insiders explain that the agreements were made when BTS was expected to complete military service before the IPO, making it a long-term investment. Bang reportedly took the put option with his personal shares to protect the company.

While legal reviews found no procedural issues, the controversy has raised concerns about transparency in high-profile IPOs. The scrutiny continues as regulatory bodies assess the implications of these undisclosed agreements.

The news comes as Hybe faces additional challenges, including girl group NewJeans' announced plans to leave Hybe's Ador following former head Min Hee-jin's departure.

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