HYBE Chairman Bang Si-hyuk banned from overseas travel… Allegedly earned 190 billion won in unlawful profits
HYBE Chairman Bang Si-hyuk was summoned for questioning at the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency in Mapo-gu, Seoul, on the 15th of last month.
Later, the police imposed a travel ban on HYBE Chairman Bang Si-hyuk on suspicion of violating the Capital Markets Act.
According to Newsis on the 1st of this month, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency prohibited Chairman Bang Si-hyuk from leaving the country on charges of violating the Capital Markets Act.
Chairman Bang is accused of deceiving existing shareholders by purchasing shares from them before HYBE’s IPO in 2019, even though the company was actively preparing for the IPO at the time. The main allegation is that Chairman Bang misled current shareholders by claiming that the IPO would be delayed. He is said to have lied that there were no IPO plans and instructed them to sell their shares to a special purpose company (SPC) established by a private equity fund (PEF) with investments from HYBE executives.
Police believe the PEF sold its shares after HYBE’s IPO, and Chairman Bang earned 190 billion won under a shareholders’ agreement that required 30% of the SPC’s stock sale profits to be paid to HYBE’s largest shareholder.
When the allegations sparked controversy, HYBE stated that it had complied with laws and regulations at the time of the IPO.
It was reported that the police learned of the incident in December last year through internal intelligence and began an investigation before filing charges. Police raided the Korea Exchange in Yeouido on June 30, and HYBE headquarters in Yongsan-gu, Seoul, on July 24.
Chairman Bang was summoned twice last month for questioning as a suspect, on the 15th and 22nd.
In addition to the travel ban, many Korean netizens also demanded that Bang Si-hyuk be detained for investigation and punished. Read some comments:
- “The beginning of Bang Si-hyuk’s downfall.”
- “As the president once said, stock manipulation criminals should have their capital confiscated and be fined double the unlawful profits so they lose everything.”
- “If Bang’s own shares were used in manipulation, they should all be confiscated and redistributed to the original shareholders.”
- “The amount is way too big, he should be arrested and investigated in custody.”
- “Strange… his close friend Park Jin-young is rising fast, while Chairman Bang is collapsing quickly.”
- “HYBEㅋㅋㅋㅋㅋㅋ It wasn’t even making as much profit as a single branch of Shinsegae Centum City.”
- “A 5 billion won fine with probation and that’s it! They’ll say it wasn’t intentional, and since it’s the first time…”
