HYBE Chairman Bang Si-hyuk Banned from Leaving South Korea Amid Capital Market Law Violation Investigation

South Korean police have imposed a travel ban on HYBE Chairman Bang Si-hyuk, who is under investigation for alleged violations of capital market laws.

On October 1, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency announced the travel ban on Chairman Bang due to allegations of capital market law violations. The travel restriction was reportedly enforced shortly after Bang returned from a business trip to the United States on August 11.

According to investigative authorities, Bang is accused of misleading existing investors, including venture capitalists, by stating 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 HYBE was allegedly preparing for its IPO.

The police suspect that Bang profited approximately 190 billion KRW (around $160 million USD) by receiving 30% of the stock sale profits through this arrangement with 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 prosecution's guidance.

Chairman Bang has been questioned twice by the police regarding these allegations. He appeared for questioning on September 15 and 22, spending 14 hours and 12 hours, respectively, in police interviews before being released.

Reported by Jiye Choi, TenAsia, wisdomart@tenasia.co.kr