HYBE Chairman Bang Si-hyuk Under Investigation for Alleged Capital Market Law Violations

HYBE Chairman Bang Si-hyuk has returned home after undergoing a second round of police questioning over alleged violations of capital market laws. The interrogation lasted approximately 12 hours.

On the evening of the 22nd, at around 10:34 PM, Chairman Bang left the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit in Mapo-gu, Seoul, after completing the lengthy questioning session. Despite being approached by reporters, he chose not to comment. This follows his first police questioning on the 15th, which also involved a rigorous 14-hour session starting at 10 AM.

Regarding the ongoing investigation, a representative from the Seoul Metropolitan Police Agency stated during a regular press briefing that "we are analyzing seized materials and questioning related parties, which necessitated a second round of questioning." However, they refrained from commenting on whether a travel ban has been requested for Bang Si-hyuk.

According to investigative authorities, Bang is suspected of misleading venture capitalists and other early investors by claiming there were no plans for an IPO in 2019, just before HYBE's public 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 evidence suggests HYBE was indeed preparing for an IPO at that time.

Police suspect that through this arrangement, Bang Si-hyuk may have illicitly gained approximately 190 billion KRW (around $160 million USD) by receiving 30% of the stock sale profits from the private equity fund.

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 direction of the prosecution.

By Ji-ye Choi, TenAsia Reporter wisdomart@tenasia.co.kr