HYBE Stock Dips Amid Arrest Warrant for Chairman Bang Si-hyuk

HYBE's stock experienced a downturn following news of an arrest warrant application for Chairman Bang Si-hyuk. On the morning of the 21st, HYBE's shares fell by over 4%, showing a sharp decline.

As of 11:50 AM, HYBE's stock was trading at 248,000 KRW, down 7,000 KRW (2.75%) from the previous trading day. At one point, the stock dropped to 244,000 KRW, marking an intraday decline of 4.31%.

This stock movement is believed to be influenced by the news that the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit has applied for an arrest warrant for Chairman Bang on charges of violating the Capital Markets Act (fraudulent unfair trading).

Chairman Bang is accused of providing false information to existing investors about delays or the absence of plans for HYBE's 2019 IPO, leading them to sell their shares. The police allege that a private equity fund (PEF) established by a HYBE executive purchased these shares, and approximately 30% of the profits from selling the shares post-IPO, amounting to around 190 billion KRW, were transferred to Chairman Bang.

The investigation intensified after the police secured related documents through a raid on the Korea Exchange in June last year. In July of the same year, they raided HYBE's headquarters in Yongsan-gu, and in August, they issued a travel ban on Chairman Bang. He was questioned five times as a suspect between September and November last year.

Reported by Min-kyung Lee, TenAsia 2min_ror@tenasia.co.kr