HYBE chairman and founder Bang Si Hyuk is currently under investigation for potential violations of the Capital Markets Act. The investigation started months ago, with both Si Hyuk and HYBE headquarters being searched for evidence of alleged unfair share trading. In a recent update, the head of the Seoul Metropolitan Police Agency revealed that the probe is almost complete and authorities are currently reviewing all possible legal aspects so that it can be concluded without clarity. Read on to know more.
Bang Si Hyuk’s Investigation Nears End
On December 15th, Park Jeong Bo, head of the Seoul Metropolitan Police Agency, shared an update on Bang’s ongoing case at a press briefing. He stated that the investigation into the HYBE chairman’s allegation of unfair share trading is almost complete. The police are currently reviewing all legal aspects of the case thoroughly so that it can be concluded without any doubts or shortcomings.
Park also revealed that the request for an arrest warrant is still under consideration when asked about it at the briefing. Recently, Bang Si Hyuk’s shares worth 156.8 billion KRW(9.72 billion INR) were frozen by authorities under he issue of a provisional seizure of forfeiture.
The Accusations
The founder has been accused of possible violations of the Capital Markets Act, where he allegedly deceived investors in 2019, right before HYBE’s IPO, by claiming that the company did not have any plans to go public. Investors claim that they were encouraged to sell their shares to a special purpose company (SPC) created by a private equity fund (PEF) controlled by HYBE executives.
The police suspect that Si Hyuk gained millions from this move, earning 30% of the profits from the post-IPO sale under a private contract with the private equity fund.
On July 24th, the police raided HYBE headquarters in Seoul and Bang was banned from leaving the country. The chairman has been questioned by authorities five times till now.
Also Read: HYBE Chairman Bang Si Hyuk’s Shares Seized By Court Amid Insider Trading Investigation
HYBE, on the other hand, refutes all such claims by saying that all actions conducted by the company were done legally by following the relevant laws and regulations.
Also Read: HYBE Chairman Bang Si Hyuk Faces Second Round Of Police Questioning In Insider Trading Probe
As the investigation nears its end, netizens wonder what the outcome will be and what effect it will have on the K-pop entertainment industry.