CEO Bang Si-hyuk, Hive's founder-CEO-the largest shareholder, signed a contract

HYBE

CEO Bang Si-hyuk, Hive's founder-CEO-the largest shareholder, signed a contract between shareholders with funds that acquired about 20% of the shares before listing. The fund was on the condition that 30% of the profits were given to CEO Bang when the stock was disposed of after listing, but if it was not listed, the stock was resold. Most of these stocks were not protected stocks that were blocked from disposal for a certain period of time after listing. Immediately after listing, the fund realized profits and paid about 400 billion won to CEO Bang. Hive's stock price soared immediately after listing, but soon plunged due to the fund's massive disposal of stocks.

A contract between shareholders that includes the transfer of profits between CEO Bang and the fund is unusual, but I think it can be. However, isn't it very inappropriate to go through an examination and list it without reporting it to the exchange and not disclosing it to other investors? CEO Bang argues that there is no obligation to report because it is a private contract between specific shareholders and does not cause loss to other shareholders, but is that right? Intuitively, how is it meaningless information that 'about 20% of the shares held by the fund can be disposed of immediately after listing, and 30% of the profits belong to the company's top decision-maker'?

In a slightly different way, 'the majority shareholder sells stocks to the fund in order to avoid protection, but in reality, the stock is not handed over. Is it actually completely different from '70% of the profit is given to the fund as a commission when disposing of stocks'? Isn't this similar to private?

Furthermore, after inducing early investment funds that did not have such contract provisions to withdraw from the list, they signed such contracts with new funds, which they did not have plans to list, so it feels like there has been a long-term thorough preparation.

Cho Jin-hyeong, a reporter of the Korea Economic Daily, made a big scoop (link is a comment). Cho is famous for not stepping down once he starts covering the news. We look forward to the follow-up news.

PS. Hive Shares Never Held In The Past And Now.