HYBE Founder Bang Si-hyuk Under Investigation for Alleged Fraudulent Transactions

HYBE founder Bang Si-hyuk is under investigation by South Korea's Financial Supervisory Service (FSS) for alleged fraudulent transactions.

According to a report by Korea Economic Daily on the 28th, the FSS has uncovered evidence suggesting that Bang misled existing shareholders by claiming there were no plans for an initial public offering (IPO), prompting them to sell their shares. This has led to an investigation under the Capital Markets Act for fraudulent transactions.

Before HYBE went public in 2020, Bang reportedly entered into an agreement with a private equity fund (PEF) established by an acquaintance, to share 30% of the profits from the sale of shares. It is reported that Bang received approximately 400 billion KRW after the IPO. This agreement was not disclosed in the securities registration statement.

The FSS has obtained evidence indicating that Bang's side told existing HYBE investors that there were no IPO plans, encouraging them to sell their shares to the PEF established by Bang's acquaintance, while simultaneously pursuing the IPO, as reported by Korea Economic Daily.

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