HYBE Chair Bang Si-hyuk appeared before police on the 15th and is being questioned on allegations of violating the Capital Markets Act.
The Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit summoned Bang at 10 a.m. as a suspect to ask about allegations that, ahead of HYBE's initial public offering (IPO), existing investors were deceived into selling their equity.
Bang arrived at the Mapo office of the Seoul agency at about 9:55 a.m. wearing a navy suit. He told reporters, "I am sorry for causing concern with my matter," and added, "I will faithfully cooperate with today's investigation." When reporters asked, "During the IPO process, is it true you told investors to sell their equity?" and "Is it true you said there were no listing plans?" he replied, "I will address that in the investigation."
According to police, in 2019 Bang told existing HYBE investors, including venture capital firms, that there were "no plans to list," then had them sell their equity to a private equity fund A affiliated with him. The investors claim, "We sold our equity relying on Bang's words, but HYBE was in fact carrying out preliminary IPO procedures at that time."
After the IPO process moved forward, police believe Bang obtained 190 billion won in unjust gains, including receiving 30% of the stock sale profit from private equity fund A. Police obtained related intelligence late last year and opened an investigation, and special judicial police officers from the Financial Supervisory Service, who operate under prosecutors' direction, are also separately looking into the allegation.
Regarding these allegations, Bang's side is said to contend that existing investors also sold their equity after earning large profits, and that the profit he received was a consideration for bearing the risk of a put option (stock purchase claim).