HYBE Chairman Bang Si-hyuk Appears for Police Investigation Over IPO Fraud Allegations

HYBE Chairman Bang Si-hyuk appeared at the Seoul Metropolitan Police Agency's Wide Area Investigation Unit on the morning of September 15th to undergo questioning regarding allegations of fraud related to the company's IPO process.

Facing the press, Bang stated, "I am deeply sorry for causing concern due to this matter. I will diligently participate in today's investigation."

When asked by reporters if he had pressured investors to sell shares during the IPO process or if he had misrepresented the company's listing plans, he briefly replied, "I will explain during today's investigation," before entering the building.

Bang is accused of misleading existing investors about IPO plans prior to HYBE's listing in 2019, and then allegedly facilitating the sale of HYBE shares to a private equity fund (PEF) established by an acquaintance.

It is understood that the existing investors included many institutional investors, with the National Pension Service also being among them. Following HYBE's IPO, the PEF reportedly sold a large volume of shares, generating substantial profits. Bang Si-hyuk is said to have personally profited around 120 billion KRW, with the total amount shared with other co-conspirators exceeding 190 billion KRW.

Previously, the police had raided and secured related documents from the Korea Exchange on June 30th and conducted a search of HYBE's headquarters in Yongsan-gu, Seoul, on July 24th.

In response, Bang's legal representatives have fully denied the allegations, asserting that no false information was provided to initial investors and that profit-sharing terms were based on proposals from the investors.

Bang Si-hyuk is renowned for discovering BTS, the group that propelled K-pop onto the global stage. His innovative business acumen has been the driving force behind HYBE's expansion beyond the entertainment industry into technology ventures. As a composer, he has also produced numerous hit songs, earning recognition for his musical talent.