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IT Chosun reported on November 17, 2023, that a BTS dance instructor and a HYBE founding member, Mr. A, was arrested in a case of stolen identity. The report noted that HYBE fired "A" in September 2023 due to allegations of embezzlement and fraudulent activity. Netizens are stunned to know that BTS' company HYBE Corporation has found itself in such a predicament. It is worth noting that the name of the accused wasn't published due to privacy concerns
In addition to siphoning tens of millions of dollars from HYBE, Mr. A is suspected of swindling billions from composers, choreographers, industrialists, and others, failing to refund them. Apart from that, stealing under HYBE's identity, he also took money for investments in goods or music which the accused has never paid back.
A BTS fan took to X, formerly Twitter, to express their thoughts and opinions on the swindling with many expressing how it was "insane" that the company didn't figure it out earlier.
As of November 17, 2023, an X account, stated that the accused is believed to have stolen more than KRW 5 Billion ($38.86 million) from his victims. Upon learning about Mr. A's misbehavior, the company enlisted the services of an outside legal company to examine the harm. However, the exact figures haven't been reported.
"This is how people learn": Fans react to the news of an employee siphoning over $3.8 million USD from HYBE
BTS' home company would be holding the offending party entirely liable from the beginning and will use a zero-tolerance policy. The company gave a statement and said that the case involved a single employee's wrongdoing in breaking the organization's recruitment and service guidelines.
HYBE went on to assert that it would hold all participants responsible in order to stop anything similar from occurring in the future.
"This case is an individual member’s misconduct in violation of the company’s service regulations and employment rules, and we will hold the responsible party strictly accountable to the end with a zero-tolerance principle,” the statement added.
The statement also declared that the company would fortify its system for internal control.
“We will hold all members accountable to prevent something like this from happening again. We will further strengthen the governance system, including professional ethics education, anti-corruption prevention, and fair trade, and strengthen the internal control system," HYBE's statement read
Fans tweeted on the post of @tmikpop and expressed their thoughts on the matter. They said that it was incidents like these that helped people learn and understand what needed to be done to ensure that these things didn't happen again. Others said that it was interesting to them that people wanted to blame HYBE for being swindled instead of the person who stole using their money. Meanwhile, some also showed concern for BTS and their safety and wondered if the boy band and their teams were "well protected."
Following the inquiry, Mr. A was placed on administrative leave and subsequently dismissed through the personnel panel procedure. HYBE also filed a criminal case against Mr. A.
Meanwhile, the company has lost tens of millions as direct harm due to the culprit, which is exempt from exchange requirements for disclosure. If charges of money laundering or violation of faith by executives or workers are verified, the disclosure requirement will apply only if the sum exceeds 5% of equity capital (or 2.5% for big corporations).
The company, which is home to BTS and SEVENTEEN, LE SSERAFIM, NewJeans, ENHYPEN, and more has sought legal counsel and has reportedly filed a lawsuit against Mr. A.
BTS members sold off their company shares for major voting rights
BTS members chose to sell all of their stocks in HYBE Corporation, according to an article published on November 17, 2023, by Yonhap News. The Data Analysis, Retrieval, and Transfer System (DART) report states that in September 2023, the members listed their equities for sale.
The four remaining members of the band, RM, Jimin, V, and Jungkook, will enlist in the military shortly and won't be active until 2025. Hence, they liquidated their current stocks. However, in return for selling their company shares, they bartered for major voting rights and the opportunity to actively participate in HYBE's business decisions.
Jin has reportedly sold his shares for around $9.9 million USD (98,58,112) while J-Hope sold his shares for $11.9 million USD (1,18,76,308). Namjoon sold $10.9 million USD (1,09,44,230) worth of shares. Meanwhile, Suga, Jimin, Taehyung, and Jungkook sold their shares for over $12.8 million USD (1,28,84,697) each. It is important to note that each member had a different set of stock investments listed individually.
The BTS members Namjoon, Jimin, Taehyung, and Jungkook will announce their enlistment date before 2023 ends.
