HYBE Chairman Bang Si-hyuk Undergoes 12-Hour Police Interrogation Over KRW 190 Billion Fraud Allegations

HYBE Chairman Bang Si-hyuk is currently undergoing a marathon police interrogation lasting more than 12 hours, as he faces allegations of unfair trading.

On the 15th, starting at 10 a.m. KST, Bang Si-hyuk appeared at the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit as a suspect in a violation of the Capital Markets Act (fraudulent unfair trading). As of 10 p.m., the investigation had surpassed the 12-hour mark, highlighting the intensity of the questioning.

Before entering the police station, Bang Si-hyuk stood before the press and said, "I sincerely apologize for causing concern due to my personal matters," adding, "I will faithfully cooperate with today’s investigation," as he bowed his head.

However, when asked pointed questions by reporters—such as whether he had instructed the sale of shares during the IPO process or if he had denied plans for HYBE’s stock market listing—Bang responded, "I will answer during the investigation."

The police investigation is expected to focus on whether Bang Si-hyuk acted with intent and whether there is a direct link between his actions and investor losses. If it is proven that his statements about having no IPO plans were false and that he personally profited from these actions, the charges of fraudulent unfair trading could be substantiated.

Previously, Bang Si-hyuk addressed HYBE employees via email, stating, "As I thoroughly explained the circumstances at the time of the IPO during the financial authorities’ previous investigation, I will once again cooperate fully and provide a detailed explanation in this ongoing inquiry. I hope the facts will be clarified through this process, and I will humbly await the authorities’ decision."



This statement effectively denied any intent to commit wrongdoing. All eyes are now on whether the grueling 12-hour police interrogation will clarify these allegations, and what position Bang Si-hyuk will take when he reappears before the press after the investigation.

The case centers on allegations that, prior to HYBE’s 2019 IPO, Bang Si-hyuk and HYBE executives misled existing investors by claiming there were no plans for a public offering. As a result, these investors sold their shares to a special purpose company (SPC) set up by a private equity fund (PEF) established by HYBE executives—a move now being investigated as fraudulent unfair trading under the Capital Markets Act.

Although investors sold their shares to the SPC, it has been reported that HYBE was already moving forward with IPO preparations, such as applying for a designated auditor, at that time. Later, as the IPO proceeded, Bang Si-hyuk allegedly received 30% of the capital gains from the private equity fund, resulting in an illicit profit of KRW 190 billion (approx. $137 million USD).

In July, police raided HYBE’s headquarters, and on the 18th of last month, prosecutors received a formal complaint against Bang Si-hyuk from financial authorities, assigning the case to the Seoul Southern District Prosecutors’ Office’s Financial and Securities Crimes Joint Investigation Unit. The National Tax Service also launched a tax investigation into HYBE in July.

Photo Credit: Xportsnews

 

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.