Police have imposed an overseas travel ban on HYBE Chair Bang Si-hyuk over allegations that he pocketed 190 billion won in illicit gains.
On the 1st, according to police and others, the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit imposed an overseas travel ban on Chair Bang on suspicion of violating the Capital Markets Act. However, details such as the timing of the measure were not disclosed.
According to police, in 2019, before HYBE's listing, Bang told existing HYBE investors, including venture capital, that there were no plans for an initial public offering (IPO). He is suspected of fraudulent unfair trading under the Capital Markets Act for inducing them to sell their equity to a special-purpose company (SPC) set up by a private equity fund connected to him.
Financial authorities are said to believe that investors, relying on 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 audit. Bang then carried out the IPO and allegedly reaped 190 billion won in illicit gains, including receiving 30% of the resale profit from the private equity fund.
Police, who obtained related intelligence late last year and launched an investigation, seized and searched the Korea Exchange in Yeongdeungpo District and HYBE's headquarters to secure materials related to HYBE's listing, and questioned Bang twice last month. Separately from police, special judicial police officers at the Financial Supervisory Service, under the direction of prosecutors, are also investigating Bang's alleged unfair trading.
However, Bang's side says there is no legal issue, asserting that all relevant laws and regulations were followed at the time of the company's listing.