HYBE President Bang Si Hyuk will be present at the Urban Investigation Unit under the Seoul Capital Police Department (Mapo-gu) at 10:00 a.m. on September 15 to serve the investigation related to the accusation of fraud during the IPO process. This was the first time he directly appeared before the investigation agency.
The state is suspected of violating the Capital Market Act. In 2019, before HYBE listed on the stock exchange, he was accused of concealing the IPO plan, causing investors to now sell shares to a company set up by the private equity fund (PEF) and backed by HYBE's directors. However, at that time, HYBE was said to have taken many steps to prepare for IPO, including registering as a auditor.
After the IPO took place, Bang Si Hyuk was said to have earned an illegal profit of about 190 billion won (equivalent to 138 million USD) through PEF profits.
Last July, the police searched HYBE headquarters. On August 18, the prosecution agency received a complaint from the financial agency and transferred the case to the Department of Investigation of Financial and Securities Crimes under the South Seoul District Prosecutor's Office. The Korea Tax Corporation also conducted an audit of HYBE at the same time.
In the email sent to the staff, Bang affirmed that he would "com plead to cooperate with the investigation process" and hoped that "the truth would soon be clarified".
