South Korean police have imposed a travel ban on HYBE chairman Bang Si Hyuk, who is under investigation for alleged violations of the Capital Markets Act.
According to reports, October 1 KST, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency restricted Bang from leaving the country as part of its probe.
Bang is accused of misleading shareholders in 2019, prior to HYBE’s initial public offering (IPO). Authorities allege he told existing investors there were no IPO plans, even though preparations were underway, thereby inducing them to sell their shares to a special purpose company (SPC) created by a private equity fund established by HYBE executives.
Investigators believe the SPC later sold the shares after HYBE’s listing, and under a shareholder agreement stipulating that 30% of profits from the sale would go to HYBE’s largest shareholder, Bang personally gained about 190 billion won (approximately USD 138 million).
HYBE has denied wrongdoing, previously stating it complied with all relevant laws and regulations at the time of listing.
Police reportedly became aware of the case through internal intelligence in December last year and began a preliminary inquiry. Raids were conducted at the Korea Exchange on June 30 and at HYBE’s headquarters in Yongsan, Seoul, on July 24.
Bang has already undergone two rounds of questioning as a suspect, on September 15 and 22.
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