South Korea’s Financial Supervisory Service (FSS) Capital Market Special Judicial Police have launched a compulsory investigation into HYBE Chairman Bang Si Hyuk, who is suspected of fraudulent unfair trading.
According to information obtained by media outlet eToday on December 18, the FSS special investigators carried out search and seizure operations over two consecutive days, starting the previous day, targeting Bang’s residence and office.
Bang Si Hyuk is currently under a wide-ranging investigation over allegations of fraudulent unfair trading. The Seoul Metropolitan Police Agency recently stated that its investigation into Bang, who is suspected of violating the Capital Markets Act through fraudulent trading practices, has entered its final stages.
Police allege that in 2019, prior to HYBE’s initial public offering, Bang misled existing shareholders during the process of purchasing their shares by suggesting that the company’s listing would be delayed, although HYBE was actively preparing for its IPO at the time.
Additional allegations claim that Bang instructed the sale of his shares to a special purpose company (SPC) established by a private equity fund in which HYBE executives were involved. The private equity fund in question is reportedly a planned fund created by an asset management firm established with investments from HYBE executives.
The case involving Bang is currently unfolding along two separate tracks. The Seoul Metropolitan Police Agency began its investigation in December last year, while prosecutors, in July, directed the FSS Capital Market Special Judicial Police to investigate a complaint alleging unfair trading by Bang.
Despite the police investigation nearing completion, the FSS special investigators’ decision to proceed with compulsory measures is widely interpreted as a move to examine additional aspects beyond what was identified during the police probe.
An FSS official stated, “Details regarding the special judicial police investigation cannot be confirmed.”
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