[2022 National Audit] Lee Bok-hyun on Money Game Allegations Involving Bithumb and Ssangbangwool: "Monitoring Closely"

Financial Supervisory Service Governor Lee Bok-hyun appeared at the National Assembly's audit of the Financial Supervisory Service held on the 11th and responded to lawmakers' questions. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Ji Yeon-jin and Lee Jung-yoon] Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated that he is "carefully monitoring market disruption activities" regarding allegations of no-capital mergers and acquisitions (M&A) using convertible bonds (CB) and bonds with warrants (BW) by Kosdaq-listed companies such as Vidente, which acquired the cryptocurrency exchange Bithumb, and Ssangbangwool.

During the National Assembly's Financial Services Commission audit of the FSS on the morning of the same day, Governor Lee said, "They formed investment associations to evade regulations, and there is a regrettable lack of proactive response to the possibility of unfair market trading using undisclosed information."

He added, "There are areas where the FSS needs to coordinate with the prosecution and the Financial Services Commission, but the cooperation among these institutions has been weak," and "There was a lack of ownership regarding each institution's role."

Earlier, Yoon Chang-hyun, a member of the People Power Party, raised allegations of no-capital acquisitions involving Kang Jong-hyun, identified as the actual owner of Vidente, the largest shareholder of Bithumb, and Ssangbangwool during the audit.

Yoon stated, "There are signs that this has become a playground for a money game by certain individuals. Although all are private placements and specific investment associations, and some good-faith investors may be involved, it could pose significant problems," adding, "It appears that money games are being played using private placement convertible bonds, and the Financial Supervisory Service should pay attention to the fact that certain individuals are profiting by leveraging the premium of being a listed company, causing social controversy."

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