HYBE Chair Bang Si-hyuk appeared before police for the second time on the 22nd to be questioned on suspicions of violating the Capital Markets Act.
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit said it summoned Bang as a suspect at 10 a.m. that day and is questioning him. He was also publicly summoned and questioned on the 15th.
According to police, in 2019 Bang told existing HYBE investors, including venture capital firms, that there were "no plans to list," then allegedly had them sell their equity to a private equity fund A connected to him. The investors claim, "We sold our equity trusting Bang's words, but in reality HYBE was going through IPO preliminary procedures at that time."
After the IPO process moved forward, police believe Bang reaped an unjust gain of 190 billion won, 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 work under prosecutors' direction, are also looking separately into the allegation.
Regarding these allegations, Bang's side has reportedly said that the existing investors also earned large revenue before selling their equity, and that the gains he received were consideration for bearing the risk of a put option (right to sell shares).