According to reports on October 1, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit confirmed that Bang Si-hyuk is barred from leaving the country.
Authorities allege that in 2019, before HYBE went public, Bang deceived existing shareholders while purchasing company stock. Despite HYBE preparing for an IPO at the time, Bang allegedly misled shareholders into believing the listing would be delayed. He reportedly convinced them there were no IPO plans, leading shareholders to sell their stakes to a private equity fund’s special purpose company (SPC), which had been established with HYBE executives’ investment.
Investigators believe the SPC sold its HYBE shares after the IPO and, under a shareholder agreement, 30% of the profit margin was transferred to HYBE’s largest shareholder. This allegedly resulted in Bang securing illicit profits totaling around 190 billion won.
HYBE has denied wrongdoing, stating that all procedures during the IPO adhered to legal requirements and regulations.
The investigation reportedly began in December last year when police received intelligence about the matter. Since then, the Financial Crimes Investigation Unit has carried out raids, including searches at the Korea Exchange in Yeouido on June 30 and HYBE’s Yongsan headquarters on July 24.
Bang was questioned twice as a suspect, on September 15 and 22.
Sources: Nate
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