HYBE Chairman Bang Si Hyuk is undergoing his second round of police questioning in connection with allegations of financial misconduct.
On November 5 KST, Bang appeared at the Financial Crime Investigation Division of the Seoul Metropolitan Police Agency in Mapo District, Seoul, where he began his questioning earlier in the morning.
Bang is suspected of having misled HYBE shareholders in 2019 by claiming that the company had no plans to go public, while allegedly arranging for a private equity fund linked to him to acquire shares from them.
Investigators believe that HYBE was, in fact, already preparing for its stock market listing at the time, and are looking into whether Bang profited unfairly—approximately 190 billion won (about $130 million USD)—through the private equity fund after the company’s IPO.
Under South Korea’s Capital Markets Act, it is illegal to obtain property gains through deception or to exploit fraudulent schemes involving unlisted shares or securities.
Bang Si Hyuk’s representatives, however, maintain that all procedures were conducted in full compliance with laws and regulations at the time of HYBE’s public listing.
SEE ALSO: Financial Supervisory Service raids HYBE chairman Bang Si Hyuk's home
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