At a regular press briefing on December 15, Seoul Metropolitan Police Commissioner Park Jung Bo stated, “The investigation is almost complete. We are thoroughly reviewing the legal aspects and analyzing all related documents to ensure no doubts remain.”
Bang Si Hyuk is accused of misleading existing investors in 2019, before HYBE’s public listing in 2020, by falsely claiming that there were no plans for an initial public offering (IPO). As a result, these investors allegedly sold their shares to a special purpose company (SPC) created by a private equity fund (PEF) established by HYBE executives. Bang and former HYBE executives were formally accused of violating the Capital Markets Act in July.
The allegations suggest that Bang entered a shareholder agreement with the PEF and later received about 30% of the profit after the company’s IPO—an arrangement that allegedly deceived existing investors. These investors included institutional investors, among them the National Pension Service. Reports estimate that Bang personally gained ₩120 billion (approx. $91 million), with total combined profits for all involved reaching ₩190 billion (approx. $144 million).
The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency has summoned Bang for questioning three times: on September 15, September 22, and November 5. Despite the investigation, Bang has consistently denied all allegations.
HYBE addressed the issue on July 17, stating, “It is unfortunate that the financial authorities did not accept the explanations provided by our largest shareholder, who clarified during questioning that there was no intent to pursue personal profit through the IPO. We respect the financial regulators’ decision and will cooperate fully with ongoing investigations to restore trust with the market and stakeholders.”
On August 6, Bang also sent an internal email to HYBE employees saying, “I have already provided detailed explanations to the financial authorities regarding the IPO process. I will continue to cooperate sincerely with the investigation and hope that the facts will become clear. I humbly await the authorities’ judgment.”
As part of the investigation, police requested a provisional seizure of Bang’s HYBE shares worth ₩156.8 billion (approx. $118 million), a request that the Seoul Southern District Court approved on November 19. This legal measure prevents the disposal of potentially crime-related assets until a final ruling is made.
Responding to this, HYBE told Newsen on December 5, “The asset freeze is a standard precautionary measure and does not imply guilt. We have cooperated fully throughout the investigation and await the final outcome.”
The public continues to watch closely as the case unfolds, given its potential impact on South Korea’s entertainment and financial sectors.
Sources: Daum
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