Bang Si Hyuk, the chairman and founder of K-pop entertainment giant HYBE, appeared before the Seoul Metropolitan Police Agency on Monday at around 9:45 am. He faced questioning regarding allegations of unfair trading practices linked to the company’s 2020 initial public offering (IPO). This marks a significant development in the ongoing investigation into HYBE’s financial activities.
Upon his arrival at the police station, Bang expressed regret for causing public concern and pledged to fully cooperate with the investigation. “I apologize for causing concern due to my actions. I will sincerely cooperate with today’s investigation.”
When reporters asked him questions about IPO fraud, he replied, “I will address these questions during the investigation.”
The investigation centers on claims that Bang Si Hyuk and other HYBE executives kept investors in the dark about the IPO process. They told shareholders that the company had no plans to go public, only to proceed with an IPO in 2020.
Authorities allege that, in the lead-up to the IPO, the HYBE founder facilitated the sale of shares to a special purpose company (SPC) linked to a private equity fund, resulting in substantial profits for himself and others involved.
Financial authorities believe that he earned approximately ₩190 billion (about $137 million) through these transactions, including a 30% share of the proceeds from the sale of shares to the SPC.
In July, the Seoul police raided HYBE’s Yongsan headquarters and seized internal documents related to the pre-IPO transactions. The Financial Supervisory Service (FSS) and the Securities and Futures Commission (SFC) have since referred Bang to prosecutors for suspected violations of Article 178 of the Capital Markets Act, which prohibits unfair trading practices.
The National Tax Service has also opened a separate probe into whether HYBE and its executives committed tax evasion related to the IPO. Authorities are reviewing whether profits tied to the disputed share transactions were properly reported.
Bang Si Hyuk had earlier told HYBE staff that he would return to Korea to face questioning, stressing that he had already explained the matter to financial regulators and would fully cooperate with police and prosecutors.
In response to these allegations, HYBE has stated that it is cooperating with investigators and maintains that its IPO complied with all relevant laws and procedures. The company has not commented directly on the allegations against Bang but emphasized that operations remain stable despite the ongoing investigation.
