HYBE chairman Bang Si Hyuk appeared before police on September 15 to be questioned over allegations of fraudulent trading during the company’s IPO process.
At around 10 a.m., Bang arrived at the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit. As per protocol, he walked the press photo line, where reporters pressed him for comments. Wearing a suit and showing a calm expression, he stated, “I sincerely apologize for causing concern with my personal matters. I will faithfully cooperate with the investigation.” He declined to answer specific questions about collusion with private equity funds, saying only that details would be addressed during questioning.
The allegations stem from 2019, when Bang reportedly told early HYBE investors and venture capital firms that no IPO was planned. However, his affiliates allegedly sold shares to a special-purpose company linked to him while secretly preparing for the IPO. Contracts revealed that Bang would earn 30% of the resale profits if the IPO succeeded. HYBE went public in October 2020 (then known as BigHit), leading to enormous profits. Authorities estimate Bang’s gains at around ₩190 billion KRW (approx. $140 million USD), down from earlier reports of ₩400 billion KRW.
In July, the Financial Services Commission’s Securities and Futures Commission referred Bang to prosecutors for violating the Capital Markets Act. The National Tax Service also launched a tax audit into HYBE. Police further raided HYBE’s headquarters in Yongsan as part of their probe.
Bang has denied wrongdoing, arguing that investor requests, not deception, shaped the deal, and that the profit-sharing terms were proposed by investors themselves. In a previous email to HYBE staff, he expressed remorse, writing, “As founder and chairman, I feel heavy responsibility for the distress caused. What began with the mission to modernize the music industry may at times have been perceived as arrogance. I am reflecting deeply on what I may have missed or mishandled.”
Public interest remains high as the case develops, with many watching closely to see how authorities will proceed and how this will affect HYBE’s reputation.
Sources: nate, daum
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