Bang Si Hyuk, the chairman of HYBE, has been placed under a travel ban as police continue their investigation into allegations of unfair trading related to the company’s 2019 pre-IPO dealings.
On October 1, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit confirmed that the ban was imposed as part of an ongoing probe into suspected violations of the Capital Markets Act.
Bang Si Hyuk Travel Ban and Investigation Timeline
The travel restriction was reportedly applied on August 11, right after Bang Si Hyuk returned to Korea. Authorities suspect that in 2019, before HYBE went public, he deceived investors by stating there were no plans for an initial public offering.
Based on that assurance, some existing investors, including venture capitalists, sold their shares to a special purpose company set up through a private equity fund linked to former HYBE executives.
When HYBE later launched its IPO, the SPC sold those shares and made huge gains. Investigators believe Bang Si Hyuk personally received about 190 billion won, which is roughly 30 percent of the total proceeds, through a pre-arranged shareholder agreement. This money is being treated as illicit profit under unfair trading rules.
The HYBE chairman has so far been questioned twice by police as a suspect. His first round of questioning lasted nearly 14 hours, while the second session stretched to about 12 hours on September 22. A police spokesperson said the second investigation was necessary because there were “areas to confirm” after analyzing seized materials and questioning related individuals.
Police Raids and Evidence Collection
The investigation has been active for months and included raids on relevant institutions. On June 30, police raided the Korea Exchange in Yeongdeungpo to obtain records tied to HYBE’s listing review. A few weeks later, on July 24, they raided HYBE’s headquarters in Yongsan. These actions were part of efforts to collect evidence about whether Bang Si Hyuk misled investors prior to HYBE’s listing.
Despite the raids and long questioning sessions, Bang Si Hyuk. has denied all allegations of wrongdoing. He maintains that he did not pursue personal gain under the premise of listing HYBE and insists that his actions were legitimate.
HYBE’s Official Response
HYBE has responded to the allegations with regret that Bang’s explanation was not accepted by financial regulators. The company emphasized that its chairman did not seek personal profit under the assumption of going public and that he had fully cooperated with the Financial Supervisory Service during earlier inquiries.
In its statement, HYBE said, “We respect the decision of the financial authorities and will do our utmost in the upcoming investigation to actively address the related suspicions and restore the trust of the market and our stakeholders.”
Bang Si Hyuk’s case is being closely watched, not only because of his position as the founder and chairman of HYBE but also due to the company’s global influence. Currently, it manages top K-pop artists, including BTS, TXT, KATSEYE, LE SSERAFIM, CORTIS, BOYNEXTDOOR, and NewJeans. The allegations, if proven, could have significant consequences for both Bang and the company’s public image.
