HYBE Chairman Bang Si-hyuk is under investigation for alleged violations of capital market laws, according to a statement by the police on the 22nd.
A representative from the Seoul Metropolitan Police Agency revealed during a regular press briefing that "since 10 AM, Bang Si-hyuk has been undergoing questioning as a suspect." The representative added, "We are analyzing seized materials and questioning related individuals, which necessitates this second round of investigation." However, they declined to comment on whether a travel ban has been requested for Bang Si-hyuk.
This marks the second time Bang has been questioned by the police, following a 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" before HYBE's 2019 listing. It is alleged that he 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 HYBE was reportedly preparing for its IPO.
The police suspect that Bang profited approximately 190 billion won through this arrangement, receiving 30% of the stock sale profits from the private equity fund.
The investigation began in earnest late last year after the police received related intelligence. The Financial Supervisory Service's special judicial police are also conducting a separate investigation under the direction of the prosecution.
Reported by Jiye Choi, TenAsia wisdomart@tenasia.co.kr