Police have conducted a total of five rounds of questioning with HYBE Chairman Bang Si Hyuk, who is under investigation for alleged violations of the Capital Markets Act.
According to police on November 18th KST, the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit summoned Bang for a second round of questioning on the 5th, and then called him in two additional times later that same week.
Earlier, police questioned him twice on September 15 and 22 during the first round of investigations.
Bang is suspected of deceiving existing shareholders in 2019 while purchasing their shares ahead of HYBE’s IPO. Despite HYBE actively preparing for its listing at the time, he allegedly misled shareholders into believing the IPO would be delayed.
He is also accused of directing a special purpose company (SPC), established by a private equity fund involving HYBE executives, to sell the shares it held. The fund was created by an asset management company founded and funded by HYBE executives.
Although an agreement existed stipulating that 30% of the profit from the SPC’s share sale would be paid to HYBE’s largest shareholder, this arrangement—along with the relationship between HYBE executives and the private equity fund—was allegedly concealed during the 2020 IPO process.
Police previously conducted raids on the Korea Exchange and HYBE headquarters on June 30 and July 24 as part of the investigation.
SEE ALSO: Financial Supervisory Service raids HYBE chairman Bang Si Hyuk's home
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