HYBE Chair Bang Si-hyuk appeared before police for the third time on the 5th and is being questioned on suspicion of violating the Financial Investment Services and Capital Markets Act.
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit summoned Bang that morning as a suspect and is under investigation. It is the third time, following two public summons in September.
According to police, in 2019 Bang told existing HYBE investors, including venture capital firms, that there was "no listing plan," then had them sell equity to a private equity fund A connected to him. The investors claim, "We sold our holdings trusting Bang's words, but in reality HYBE was going through preliminary IPO procedures during this period."
After the IPO process proceeded, police believe Bang obtained 190 billion won in unjust gains, including receiving 30% of the stock sale profits from private equity fund A. Police received related intelligence late last year and launched an investigation, and special judicial police officers of the Financial Supervisory Service, who act under the prosecution's investigative command, are also looking into the allegation separately.
Regarding these allegations, Bang's side has said that the existing investors also sold their equity after earning large revenue, and that the revenue Bang obtained was a countervailing benefit received for bearing the risk of a put option (stock purchase claim).