Police will summon Chairman Bang Si-hyuk of HYBE for the first time on the morning of the 15th in connection with allegations of fraudulent unfair trading.
According to police and others on the 10th, the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit plans to call in Chairman Bang to the Mapo office for questioning at around 10 a.m. on the 15th. Police are said to be considering an on-the-record appearance in principle.
According to police, before HYBE's listing in 2019, Chairman Bang deceived existing HYBE investors, including venture capital firms, by saying there were no plans for an initial public offering (IPO). He is suspected of violating the Capital Markets Act by engaging in fraudulent unfair trading by inducing the sale of equity to a special purpose company (SPC) established by a private equity fund connected to him.
Financial authorities are said to have determined that investors, relying on Chairman Bang's words, sold their equity to the SPC, while HYBE at the time was proceeding with preliminary IPO steps such as applying for a designated auditor. Chairman Bang later carried out the IPO and allegedly obtained 190 billion won in unjust gains, including receiving 30% of the resale profit from the private equity fund.
On Jun. 30, police raided the Korea Exchange in Yeongdeungpo District, Seoul, and secured materials related to HYBE's listing review, and on Jul. 24, they searched HYBE's headquarters.
Separately from the police, special judicial police officers of the Financial Supervisory Service, acting under the direction of prosecutors, are also investigating Chairman Bang's alleged unfair trading.