Police Summon Bang Si-hyuk for the First Time Over 190 Billion Won Unfair Profit Allegations: "I Will Cooperate Fully with the Investigation"

Police Received Intelligence Late Last Year
Conducted Search and Seizure at Korea Exchange and Company Headquarters

On September 15, the police publicly summoned Bang Si-hyuk, chairman of HYBE, for the first time in connection with allegations of fraudulent and unfair trading.

Bang Si-hyuk, chairman of HYBE, is appearing as a suspect on the 15th at the Financial Crime Investigation Division of the Seoul Metropolitan Police Agency in Mapo-gu, Seoul. Photo by Yonhap News

At around 10 a.m. that day, Chairman Bang appeared at the Financial Crime Investigation Division of the Seoul Metropolitan Police Agency and told reporters, "I apologize for causing concern due to my personal matters," adding, "I will faithfully cooperate with the investigation."

According to the police, Chairman Bang is suspected of violating the Capital Markets Act by engaging in fraudulent and unfair trading. In 2019, before HYBE's initial public offering, he allegedly deceived existing investors such as venture capital firms by telling them there were no IPO plans, and then induced them to sell their shares to a special purpose company (SPC) established by a private equity fund with which he was affiliated.

Based on Bang's statements, the investors sold their shares to the SPC. However, financial authorities determined that HYBE was already undergoing preliminary IPO procedures at that time, such as applying for a designated auditor. Subsequently, Chairman Bang proceeded with the IPO and reportedly gained an illicit profit of 190 billion won, including receiving 30% of the capital gains from the private equity fund.

After receiving a tip-off at the end of last year, the police conducted a search and seizure at the Korea Exchange in Yeongdeungpo-gu, Seoul, on June 30 and secured documents related to HYBE's IPO review. On July 24, they also searched HYBE's headquarters.

Previously, on August 6, Chairman Bang sent an email to HYBE employees stating, "I am once again reflecting deeply on whether I missed or neglected anything during the process of our growth," and added, "I will do my best to explain all circumstances and resolve the situation so that my personal issues do not become an obstacle for you."

This content was produced with the assistance of AI translation services.