HYBE chairman Bang Si-hyuk appeared before police for questioning in connection with alleged fraudulent transactions, marking the first time he has faced an investigation by law enforcement.

On September 15 at 9:54 a.m., Bang arrived at the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit. Wearing a suit and with his hands clasped, he briefly addressed reporters at the photo line, saying, "I sincerely apologize for causing concern with my personal matter. I will fully cooperate with the investigation." He did not respond to further questions.

Allegations of Fraudulent Trading

Bang is under investigation for alleged violations of the Capital Markets Act. Authorities suspect that in 2019 he misled existing investors by saying there were no IPO plans, then arranged for a private equity fund with ties to him to purchase HYBE shares through a special purpose company (SPC).

Investigators believe Bang had a contract entitling him to receive 30% of the resale profit. The private equity fund allegedly sold off a large number of shares immediately after HYBE went public, with Bang reportedly receiving about 190 billion KRW in proceeds.

Ongoing Investigation

The police launched their probe last year after receiving intelligence on the case. In June, they raided the Korea Exchange, followed by a search of HYBE's headquarters in late July. Analysis of the seized materials has now been completed.

Bang returned to Korea last month and has remained in the country since. Meanwhile, Korea's Financial Services Commission has also filed a formal complaint against him for fraudulent trading, with the prosecution directing the case through the Financial Supervisory Service's special judicial police team.