According to Kyunghyang Shinmun on September 10, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit plans to question Bang at the Mapo office on September 15 at 10 a.m. Since the police generally enforce public appearances, Bang is expected to pass through the press photo line.
Bang is accused of misleading early investors, including venture capital firms, in 2019—before HYBE went public—by claiming there were no plans for an IPO. He then allegedly arranged for these investors to sell their shares to a special purpose company (SPC) established by a private equity fund linked to him, in violation of the Capital Markets Act.
Based on Bang’s statements, the investors sold their stakes to the SPC. However, according to the Financial Supervisory Service, HYBE was already in the process of applying for a designated auditor at the time, a preliminary step toward IPO listing.
Authorities believe Bang later proceeded with the IPO and received 30% of the private equity fund’s sale profit, reaping approximately 190 billion KRW in unjust gains.
The police have been actively pursuing the case, raiding the Korea Exchange in Yeongdeungpo on June 30 for HYBE’s listing review materials, followed by a search of HYBE headquarters on July 24. Meanwhile, special judicial police officers from the Financial Supervisory Service, under the prosecutor’s direction, are also investigating Bang’s alleged fraudulent trading.
Sources: nate
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