The police are set to summon and question Bang Si-hyuk, Chairman of Hybe, who is under suspicion of engaging in fraudulent transactions.
According to the police on September 10, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency plans to summon Chairman Bang to the Mapo office for questioning at around 10 a.m. on September 15. In accordance with the principle of public appearances, Chairman Bang is expected to pass through the press photo line.
Chairman Bang is suspected of violating the Capital Markets Act by engaging in fraudulent transactions. Specifically, before Hybe's initial public offering (IPO) in 2019, he allegedly deceived existing investors, including venture capital firms, by claiming there were no IPO plans, and then induced them to sell their shares to a special purpose company (SPC) established by a private equity fund with which he was affiliated.
Based on Chairman Bang's statements, the investors sold their shares to the SPC. However, according to financial authorities, Hybe was in fact proceeding with preliminary IPO procedures at that time, such as applying for a designated auditor. Chairman Bang subsequently carried out the IPO and reportedly gained an unfair profit of 190 billion won, including receiving 30% of the resale profit from the private equity fund.
On June 30, the police conducted a search and seizure at the Korea Exchange in Yeongdeungpo-gu, Seoul, securing materials related to Hybe's IPO review. On July 24, they also searched Hybe's headquarters.
Separately from the police, special judicial police officers of the Financial Supervisory Service, under the direction of the prosecution, are also investigating Chairman Bang's alleged fraudulent transactions.
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