Police will summon HYBE chairman Bang Si-hyuk for investigation into allegations of fraudulent and illegal trading on the morning of September 15.
According to media reports today (September 10th), the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency plans to summon Bang for questioning at 10:00 AM on September 15th at the Mapo District Office.
A police official explained, “We cannot confirm whether (Chairman Bang’s side) requested a closed-door appearance,” adding, “Regardless of the request, open appearances are the rule.”
Therefore, it is expected that he will pass through a press photo line prior to his appearance.
According to police, Chairman Bang is accused of deceiving existing HYBE investors, including venture capital firms, in 2019, prior to HYBE ‘s listing, that there were no plans for an initial public offering (IPO), and then having them sell their shares to a special purpose vehicle (SPC) established by a private equity fund with which he was affiliated (on charges of fraudulent trading under the Capital Markets Act).
Investors sold their shares to SPC following Chairman Bang’s statement, but financial authorities believe that at the time, HYBE was in the process of applying for a designated audit, a pre-IPO procedure.
Chairman Bang subsequently proceeded with the IPO and is believed to have reaped 190 billion won (approximately 140 million USD) in illicit profits, including receiving 30% (around 42 million USD) of the sale proceeds from a private equity fund.
On June 30, police raided the Korea Exchange in Yeongdeungpo-gu, Seoul, securing documents related to HYBE’s listing review. On July 24, they raided HYBE’s headquarters.
In addition to the police investigation, special judicial officers from the Financial Supervisory Service, under the direction of the prosecution, are also investigating allegations of illicit trading by Chairman Bang.
Korean Netizens React:
- “I’ve been waiting for the day he stands at the photo line. I’ll evaluate whether the reporters’ eyes were serious when they said he lost weight and could debut as an idol. If there’s one thing I hope for, it’s that they request an arrest warrant that very day.”
- “The company’s really running smoothly,ㅋㅋ raids going on and the chairman even standing at the police line, ㅋㅋ.”
- “They raided the place in July, and only after two months he’s finally at the photo line. Wasn’t Korea supposed to be all about doing things quickly?!”
- “Whether it’s 1 billion won or 400 billion won, let’s just detain him and investigate.”
