HYBE Chairman Bang Si Hyuk is approaching the final stage of a police investigation into allegations of fraudulent stock transactions.
At a press briefing on December 15, Park Jeong Bo, head of the Seoul Metropolitan Police Agency, said, “We understand that the investigation is almost complete,” and added, “We are thoroughly reviewing the legal aspects to ensure the investigation concludes without any doubt.”
When asked about the possibility of requesting an arrest warrant, Park said it is still under consideration.
Bang Si Hyuk is accused of deceiving existing investors in 2019—before HYBE’s initial public offering (IPO)—by falsely claiming there were no plans for the company to go public. Investors were allegedly encouraged to sell their shares to a special purpose company (SPC) created by a private equity fund (PEF) controlled by HYBE executives.
Police suspect that Bang Si Hyuk received about 19 billion KRW (12.9 million USD) in illegal gains, taking 30% of the profits from the post-IPO sale under a private contract with the fund.
Authorities conducted a raid on the Korea Exchange in Yeongdeungpo, Seoul, on June 30 to collect documents related to HYBE’s listing review. On July 24, they also raided HYBE’s headquarters in Yongsan, Seoul. Bang was subsequently barred from leaving the country and has been questioned five times.
Bang’s legal team maintains that all actions during the IPO fully complied with relevant laws and regulations and insists that there is no legal wrongdoing.
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