HYBE Chairman Bang Si-hyuk Appears for Police Investigation Over Fraud Allegations, Apologizes for Causing Concern

HYBE Chairman Bang Si-hyuk made a public appearance as he arrived for a police investigation.

On the morning of the 15th at 10:00 a.m. KST, Bang Si-hyuk appeared before the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency as a suspect in a case involving alleged violations of the Capital Markets Act (fraudulent unfair trading).

Bang Si-hyuk, dressed in a suit, stepped out of his car and stood before the press at the photo line. He briefly apologized, saying, “I sincerely apologize for causing concern due to my personal matters. I will faithfully cooperate with today’s police investigation,” before proceeding inside.

This is the first time Bang Si-hyuk has appeared before investigative authorities for questioning. He is accused of deceiving existing investors prior to HYBE’s 2019 stock market listing by falsely stating there were no plans for an initial public offering (IPO). As a result, investors sold their shares to a special purpose company (SPC) established by a private equity fund (PEF) set up by HYBE executives. The charges allege this constitutes fraudulent unfair trading under the Capital Markets Act.

Although investors sold their shares to the SPC, it was later revealed that HYBE was already in the process of taking preliminary steps for an IPO at that time, including applying for a designated auditor. Bang Si-hyuk is reported to have proceeded with the IPO and allegedly gained an unfair profit of KRW 190 billion (approx. $138 million USD), including receiving 30% of the capital gains from the private equity fund.

Police began their investigation after receiving a tip-off late last year. In July, they conducted a high-intensity search and seizure at HYBE’s headquarters in Yongsan-gu, Seoul.

Photo Credit: Go Ara

This article is a translated version of the original Korean article published by Xportsnews, originally written by Myung Heesuk. This article was translated from Korean using AI-assisted tools and human review to deliver an accurate and culturally appropriate version for international readers.