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

The chairman of HYBE, Bang Si-hyuk, is reportedly under investigation by the police for alleged violations of the Capital Market Act.

According to the police on the 18th, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency has recently summoned Chairman Bang for questioning twice regarding allegations of fraudulent trading under the Capital Market Act. The additional questioning was conducted as the investigation on the 5th of this month was not concluded.

Chairman Bang is accused of misleading existing investors of HYBE in 2019 by stating there were no plans for an IPO, subsequently encouraging them to transfer their shares to a private equity fund associated with him. He allegedly received 30% of the sale profits from the private equity fund, amounting to approximately 190 billion won in illicit gains.

In June and July of this year, the police conducted raids on the Korea Exchange and HYBE, and imposed a travel ban on Chairman Bang. Including last weekend, he has been summoned for questioning a total of five times. During a press briefing at the Seoul Metropolitan Police Agency, a police official stated that the investigation has made significant progress.

Chairman Bang's representatives maintain that all legal procedures and regulations were followed during the company's public listing, asserting that there are no legal issues.

Reported by Kim Ji-won, TenAsia one@tenasia.co.kr