Bong Si-hyuk, Chairman of HYBE, who is under suspicion for "fraudulent unfair trading" during the company's initial public offering (IPO) process, has recently undergone two additional rounds of questioning.
According to the police on November 18, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency recently summoned Chairman Bang for questioning two more times. The additional investigations were conducted because the session held on November 5 had not been completed.
Chairman Bang is suspected of deceiving HYBE investors in 2019 by falsely claiming there were no plans to go public, leading a particular private equity fund to purchase shares, and then subsequently listing the company.
The police suspect that Chairman Bang, based on a confidential agreement with the private equity fund, received 30% of the capital gains after the IPO, earning approximately 190 billion won in illicit profits.
The Capital Markets Act prohibits acts such as obtaining financial gains through false statements or using fraudulent schemes in connection with financial investment products, including unlisted stocks.
In June and July of this year, the police conducted searches and seizures at the Korea Exchange and HYBE, among others, and imposed a travel ban on Chairman Bang.
Meanwhile, Chairman Bang maintains that there are no legal issues, stating that all relevant laws and regulations were followed at the time of the company’s listing.
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