BANG SI HYUK
As BANG SI HYUK, chairman of HYBE, is being questioned over suspected fraudulent transactions, attention is also on what position he might take after the investigation.
On September 15 at 10 a.m. KST, BANG SI HYUK appeared before the Financial Crimes Investigation Unit of the Seoul Metropolitan Police as a suspect for violating the Capital Markets Act (fraudulent transactions). More than three hours into the questioning, the investigation was still ongoing.
He arrived at the police station around 9:54 a.m. and could not avoid the photo line. He stated: “I am sorry for causing concern due to my affairs” and “I will respond sincerely to the investigation today.”
When asked by reporters, “Did you request shares be sold during the IPO process?” or “Did you say there was no IPO plan?”, he replied: “I will explain during the investigation.”
Other questions regarding potential collusion with private equity funds were also raised, but he did not respond and entered for questioning.
This is the first time BANG SI HYUK has appeared before authorities for this investigation. He is accused of, before HYBE’s 2019 IPO, misleading existing investors by claiming there was no IPO plan and causing them to sell shares to a special purpose company (SPC) created by a private equity fund (PEF) established by HYBE executives, constituting “fraudulent transactions” under the Capital Markets Act.
Investors sold their shares to the SPC, while HYBE was reportedly carrying out IPO preparatory procedures, including a designated audit application. Later, BANG SI HYUK is alleged to have received 30% of the PEF’s sale profits, totaling an estimated illegal gain of 190 billion won.
The police raided HYBE’s headquarters in July, and the prosecution received a complaint against BANG SI HYUK from financial authorities on August 18, which was assigned to the Seoul Southern District Prosecutor’s Office’s Joint Financial and Securities Crimes Investigation Unit. The National Tax Service also launched a tax investigation into HYBE in July.
BANG SI HYUK later emailed HYBE staff: “As we already explained in detail to the financial authorities during their investigation, I will also respond sincerely to this investigation and provide a full explanation. I expect the facts to be clarified through this process and will humbly await the authorities’ decision.” This effectively appears to deny the fraudulent transaction allegations.
The Financial Crimes Investigation Unit is conducting an intensive and prolonged interrogation of BANG SI HYUK. Attention remains on the stance he will take regarding the allegations once the investigation concludes.
Journalist: Shawn
Translator: Shawn
Source: Xport news
