BANG SI HYUK
BANG SI HYUK, chairman of HYBE, suspected of deceiving investors into selling their shares during the company’s IPO process, is set to appear before the police.
On September 15 at 10 a.m. KST, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency will question Mr. BANG SI HYUK as a suspect for violating the Capital Markets Act (fraudulent transactions).
Since public appearance is the principle, Mr. BANG SI HYUK is expected to stand before the press that day. Close attention is being paid to the stance he will take regarding the allegations.
Mr. BANG SI HYUK is accused of, in 2019, prior to HYBE’s IPO, misleading existing investors and venture capital (VC) firms by claiming there were no IPO plans, and then arranging for them to sell their shares to a private equity fund (PEF) established by an acquaintance of his. These actions are considered “fraudulent transactions” under the Capital Markets Act.
Trusting his statements, investors sold their shares, but according to financial authorities, HYBE was already undergoing IPO preparatory procedures at that time.
Subsequently, the IPO went forward, and Mr. BANG SI HYUK is believed to have gained illicit profits of about 400 billion won, including receiving 30% of the capital gains from the sale, in accordance with a prior shareholder agreement.
The police launched their investigation after receiving intelligence last December, and special investigators from the Financial Supervisory Service are also looking into the suspicions. In July, police carried out a search and seizure at HYBE headquarters in Yongsan, Seoul.
On the 6th of last month, in an internal email, Mr. BANG SI HYUK stated:
“I have been reflecting on whether there were shortcomings or oversights I failed to address during the process of growth. I will do my utmost to explain and resolve every situation so that my personal issues do not become an obstacle for you.”
Journalist: Shawn
Translator: Shawn
Source: SNS HYBE
