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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, September 15, 2025 — HYBE Chairman Bang Si-hyuk appeared before police on the 15th for questioning over allegations that he obtained approximately KRW 190 billion (USD 138 million) in illicit gains during the company’s initial public offering (IPO). He was interrogated for more than 13 hours.
Bang entered the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Division in Mapo at 10:00 a.m. as a suspect. Upon arrival, he told reporters, “I sincerely apologize for causing public concern with this matter. I will faithfully cooperate with the investigation.”
At around 11:48 p.m., Bang left the building without answering reporters’ questions about whether he had provided false information. Surrounded by security guards, he departed in a waiting vehicle.
Investigators suspect that in 2019, Bang misled existing HYBE investors—including venture capital firms—by claiming the company had no IPO plans. He allegedly persuaded them to sell their shares to a special purpose company (SPC) created by a private equity fund established by HYBE executives.
Authorities say that HYBE was in fact already preparing for an IPO at that time. After the IPO process moved forward, the SPC sold its holdings, and Bang allegedly received about 30% of the sale profits under a confidential agreement, amounting to approximately KRW 190 billion in unlawful gains.
Under Korea’s Capital Markets Act, it is prohibited to obtain financial benefits by making false statements or using fraudulent schemes in connection with financial investment products, including unlisted shares. Violations involving illicit gains exceeding KRW 5 billion are punishable by life imprisonment or a minimum prison sentence of five years.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
