HYBE Chairman Bang Si-hyuk is under investigation for alleged violations of the Capital Market Act, marking his second appearance for police questioning.
The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency summoned Chairman Bang at 10 a.m. on the 22nd as a suspect in the case. This follows his initial public summons on the 15th.
According to investigative authorities, Bang is accused of misleading existing investors, including venture capitalists, by stating there were "no plans for an IPO" just before HYBE's 2019 listing. He allegedly facilitated the transfer of shares to a special purpose company (SPC) established by a private equity fund linked to him. Investors, believing this information, sold their shares, while evidence suggests HYBE was indeed preparing for an IPO at that time.
Police suspect that Bang profited approximately 190 billion KRW (around $160 million USD) by receiving 30% of the stock sale profits through this arrangement.
The investigation began in earnest late last year after police received related intelligence. The Financial Supervisory Service's special judicial police are also conducting a separate investigation under the prosecution's guidance.
Choi Ji-ye, TenAsia Reporter wisdomart@tenasia.co.kr