BANG SI HYUK
HYBE chairman Bang Si Hyuk was notified as a witness in the trial related to suspicions of stock price manipulation of SM Entertainment by Kakao, but he is expected to be absent once again.
On July 7, news outlet News1 reported that Bang Si Hyuk’s team recently submitted a letter explaining his absence to the 15th Criminal Division of the Seoul Southern District Court (presided over by Chief Judge Yang Hwan Seung).
At a previous hearing, the court designated Bang Si Hyuk as a witness for the trial scheduled on July 11 and issued a subpoena. However, since an excuse for absence was submitted, Bang Si Hyuk is unlikely to attend that hearing.
Bang Si Hyuk had also been subpoenaed as a witness at the June 20 hearing but did not appear, citing a business trip.
This trial concerns charges of violating the Financial Markets Act against Kim Beom Su, the founder of Kakao. He is accused of conspiring with a private equity fund, One Asia Partners, and others between February 16–17 and 27–28, 2023, to manipulate SM Entertainment’s stock price during its acquisition by fixing the tender offer price above 120,000 won to prevent the competing company HYBE from taking control.
The prosecution planned to question Bang Si Hyuk to investigate what discussions took place between him and Chairman Kim during Kakao’s acquisition of SM Entertainment. According to the prosecution, Bang Si Hyuk explicitly asked Kim not to pursue control of SM Entertainment during a meeting, but Kim rejected the request.
Furthermore, when someone is designated as a witness, they must appear in court unless there is a valid reason for absence. If they fail to appear, the court may order them to cover litigation costs and impose a fine of up to 5 million won (approximately 3,800 euros).
Journalist: Shawn
Translator: Shawn
Source: Madia News1
