[Economic PICK] Bang Si-hyuk, New Jin's 'Notification of Farewell' and Financial Authorities' Investigation

[Anchor]
Shall we look at the second topic?

Bang Si-hyuk and New Jin's 'Notification of Farewell' and even an investigation by the financial authorities. Has Hive Chairman Bang Si-hyuk even been investigated?

[Reporter]
Not yet investigated,

The financial authorities are seriously checking Hive's report at the time of its listing in 2020.Chairman

will be very confused by Newzins' declaration of separation, but it will be even more embarrassing to know that he signed a "secret contract" and collected 400 billion won when he was listed four years ago.

Recent media reports revealed that private equity funds invested in Hive with Chairman Bang at the time of the offering were "secret contracts."

The 'Secret Contract' means that if an initial public offering is made after a certain period of time, 30% of the investment profit will be paid to the Chairman Bang.

As a result, it was reported that Chairman Bang actually received more than 400 billion won from private equity funds.

Looking more at the situation at the time, the stock price jumped to 340,000 won on the first day of the public offering, 2.6 times the public offering price, and then plummeted to 130,000 won after 12 days.

However, in the middle of that, a large number of shares of private equity funds came out on the market.

They made huge profits, but they encouraged the stock price to fall, causing huge losses for individual investors.

[Anchor]
Investors have low confidence in our stock market, so why did this happen?

[Reporter]
Usually, major shareholders and related party shares can be on the market after a certain period of time (usually six months) after the public offering under a system called 'Protection Jesus'.

By the way, private equity shares are an exception to the 'Protection Jesus' target.

As a result, Hive says there is no legal problem.

However, the problem is that I omitted this secret contract when reporting to the financial authorities before listing.

A senior Financial Supervisory Service official said he omitted a "secret contract" in the process of filing Hive's securities returns and was checking whether there were any violations of the law in the private equity fund's stake acquisition process.

After checking, I added that if there is a problem, we can launch an investigation.

The market is also looking at this issue as important.

There is an opinion that if there was a profit distribution to Chairman Bang in the contract between shareholders, it should have been disclosed transparently in advance and "protected Jesus" for a certain period of time.

Let's listen to the interview.

[Yum Seung-hwan/ Director of LS Securities: Regardless of whether it's illegal or not, when Hive listed in 2020, he signed up for a public offering or BTS was so popular at the time of listing that he tried to invest in it for a long time, but he didn't report it at all.]

At the time of Kakao Pay's public offering three years ago, executives sold about 90 billion won worth of shares held as stock options within a month of listing, causing the stock price to plunge.

Since then, the law has been revised, and the system has been changed to allow shares held as stock options to be "protected" for a certain period of time.

Hive shares have been bearish since Newzins' announcement of the split, which is down 2.8% today as Chairman Bang's secret contract is known.