As reported in a piece by E Today on December 18, a search and seizure was carried out at HYBE chairman Bang Si Hyuk’s home and office by the Financial Supervisory Service’s (FSS) Special Judicial Police for the Capital Markets. The search, which allegedly spanned over two days from December 17, was a part of a larger investigation related to offences under South Korea’s Capital Markets Act. The investigation has been ongoing for months. Read on to know more. HYBE Chairman Bang Si Hyuk’s Home Raided In Financial Fraud Investigation There are also beliefs that Bang Si Hyuk may have deceived HYBE’s existing shareholders in relation to the preparation of the IPO. This follows the claim that, when HYBE was preparing to list in 2019, Bang allegedly told some of its shareholders that the IPO would be postponed. This made the shareholders sell their shares in the company based on those assumptions. The investigation also alleges that Bang Si Hyuk was involved in overseeing the trade of the shares owned by a “special purpose company” (SPC) affiliated with a private equity fund. The private equity fund is alleged to have been structured and capitalised by HYBE’s executives themselves. There are concerns about possible conflicts of interest and illegal trading. About The Investigation Presently, there are two tracks of investigation running. The Seoul Metropolitan Police Agency started investigating the case in December of last year. In addition, the case involving illegal trading was referred by the prosecutors to the FSS’s Special Judicial Police for the Capital Markets in July. The fact that the FSS is moving ahead with search and seizure operations, despite the police investigation soon being completed, is an indication that the authorities feel there is more that needs to be investigated, beyond what has already been established. It was last week that reports emerged that government agencies had confiscated HYBE-related assets owned by Bang as part of the same investigation. Also Read: Is Investigation Into Bang Si Hyuk’s Illegal Share Trading Case Concluding? Here’s What We Know HYBE has yet to release an official statement regarding the recent events. This case remains under public scrutiny, given the major role that Bang Si Hyuk had in the establishment of HYBE, which has become one of the leading entertainment firms in South Korea. Also Read: HYBE Chairman Bang Si Hyuk’s Shares Seized By Court Amid Insider Trading Investigation
