The Financial Supervisory Service’s Capital Market Special Judicial Police have launched an investigation into HYBE Chairman Bang Si-hyuk over suspicions of deceiving investors and gaining illicit profits during the company’s listing.
According to reports, on the 17th and 18th, special judicial police searched Bang’s residence, HYBE’s headquarters in Yongsan, Seoul, and the homes and offices of other involved parties.
Investigators are examining emails and meeting records exchanged by Bang and executives to determine if illegal activities occurred during the listing process.
The investigation into Bang is being conducted concurrently by the Financial Supervisory Service’s special judicial police and the general police.
Bang is accused of misleading HYBE investors in 2019 by allegedly claiming there were no plans for the company to go public, then selling shares to a specific private equity firm before proceeding with the listing. Police allege Bang received 30% of the sale proceeds, resulting in an illicit gain of approximately ₩190 billion.
Police recently obtained a pre-indictment preservation order from the court for HYBE shares worth ₩156.8 billion held by Bang.
Following news of the asset preservation, a HYBE representative told Xportsnews, “The preservation order is a routine procedure and not a judgment of guilt or innocence. We are earnestly cooperating with the investigation and awaiting the authorities’ decision.”
Image source: Xportsnews
