Bang Si Hyuk, chairman of HYBE, is scheduled to appear for questioning by police on September 15th at 10 AM at the Seoul Metropolitan Police Agency’s Metropolitan Investigation Unit in Mapo-gu, Seoul.
This marks the first time Bang will personally appear before law enforcement for an investigation. According to a local government official, “Bang Si Hyuk did not request a private appearance, so it’s highly likely he will stand on the photo line upon arrival.”
Bang is under investigation for allegedly committing fraudulent practices under the Capital Markets Act. In 2019, before HYBE went public, he reportedly misled existing investors by claiming there were no plans for an initial public offering (IPO). As a result, the investors sold their shares to a special purpose company (SPC) established by a private equity fund (PEF) funded by HYBE executives.
However, reports indicate that at the time, HYBE was already taking pre-IPO steps, including applying for a designated auditor. Bang then proceeded with the IPO and allegedly received 30% of the sale profit from the PEF, ultimately securing an illicit gain of approximately 190 billion KRW (≈ USD 138 million).
In July, police raided HYBE headquarters. On August 18th, the prosecution received a formal complaint from financial authorities and assigned the case to the Financial and Securities Crimes Investigation Division at the Seoul Southern District Prosecutors’ Office. The National Tax Service also launched a tax audit into HYBE in July.
Following these developments, Bang emailed internal staff, stating, “As I have already provided detailed explanations during the financial authorities’ investigation, I will sincerely cooperate with the upcoming inquiries and clarify all facts once again.” He added, “I hope the truth will be revealed through this process and I will humbly await the authorities’ judgment.”
SEE ALSO: Fair Trade Commission issues warning to HYBE chairman Bang Si Hyuk over omitted subsidiaries
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