HYBE Chairman Bang Si-hyuk reported to the police for questioning amid allegations of deceiving early investors into selling their shares during the company’s initial public offering (IPO) process.
On Monday morning, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency began their interrogation of Bang, on charges of violating the Capital Markets Act. He arrived at the police headquarters in Mapo-gu around 9:55 a.m. and stated, “I sincerely apologize for causing concern. I will cooperate fully with the investigation.”
When asked about specific details regarding the sale of shares during the IPO process, Bang avoided a direct answer, saying he would address these matters during the official questioning.
According to police, Bang is suspected of deceiving existing investors, including venture capital firms, in 2019 prior to HYBE’s IPO. He allegedly claimed there were no plans for an IPO, prompting them to sell their shares to a special purpose company (SPC) established by a private equity fund associated with him. After the company went public, the private equity fund sold its shares, with Bang reportedly receiving about 30% of the profits, amounting to about 200 billion KRW (approximately 144 million USD).
The investigation was initiated last December following a tip-off. Authorities executed search warrants at the Korea Exchange in Yeongdeungpo-gu on June 30 and at HYBE’s headquarters in Yongsan-gu on July 24, seizing relevant documents.
In an internal email last month, Bang stated, “I expect the facts will be revealed, and I will humbly await the authorities’ judgment.”
