BANG SI HYUK
The police have requested an arrest warrant for the chairman of HYBE, BANG SI HYUK, suspected of violating the Capital Markets Act for acts of fraudulent transactions.
The Financial Crimes Investigation Unit of the SEOUL METROPOLITAN POLICE AGENCY announced on April 21 that it had requested an arrest warrant for Chairman BANG, accused of violating the Capital Markets Act (deceptive fraudulent transactions).
Chairman BANG is suspected of having deceived investors in 2019, before the initial public offering of HYBE, by claiming that there were no listing plans in order to incite them to sell their shares to a specific private equity fund (PEF), before subsequently proceeding with the initial public offering.
The police estimate that Chairman BANG, in accordance with a private contract concluded in advance with the investment fund, received 30% of the capital gains after the listing, thus realizing an illicit profit of nearly 200 billion won.
Chairman BANG‘s camp maintains that he did not deceive the initial investors but that he acted at their request, and asserts concerning the distribution of profits that these were conditions first proposed by the investors.
Journalist: Shawn
Translator: Shawn
Source: Website Hybe
