HYBE Chairman Bang Si-hyuk referred to prosecutors over alleged IPO fraud

Bang Si-hyuk HYBE Capital Markets Act investor fraud K-pop

South Korean police have referred HYBE Chairman Bang Si-hyuk and four other executives to prosecutors without detention on charges of violating the Capital Markets Act. The investigation, which lasted approximately 20 to 21 months, centers on allegations of fraudulent trading related to the company’s 2020 initial public offering (IPO).

Authorities allege that in 2019, Bang and his associates misled existing shareholders by claiming there were no immediate plans for an IPO, despite active preparations. This allegedly induced shareholders to sell their stakes to a private equity fund linked to the executives. Following the successful listing in October 2020, the shares were sold, resulting in approximately 263.1 billion won in alleged improper gains.

A court has already granted a request to preserve assets equivalent to the suspected illegal profits. While police previously sought arrest warrants for Bang in April and May, prosecutors rejected the requests, citing insufficient grounds for detention and the need for further investigation.

Former CIO Kim Jung-dong has fled to the United States, prompting police to request an Interpol red notice. Bang Si-hyuk’s legal team denies all wrongdoing, stating they have consistently provided objective evidence to clear the allegations and expect a transparent resolution through the legal process.

Entities

Bang Si-hyuk · Big Hit · HYBE · Kim Jung-dong · Seoul Metropolitan Police Agency · Seoul Southern District Prosecutors' Office · Seoul Southern District Prosecutors’ Office

Claims

What the coverage asserts, and how many sources carry each claim.

[DISPUTED] The alleged improper gains from the 2020 IPO total approximately 263.1 billion won. isplus.com · www.sisajournal.com · kpophit.com · baoxaydung.vn · afamily.vn · +6 more
[● 3 SOURCES] Former CIO Kim Jung-dong has been placed on Interpol's red notice after fleeing to the United States. www.sisajournal.com
[● 7 SOURCES] A court granted a request for the full preservation of assets equivalent to the alleged improper gains. isplus.com · www.sisajournal.com · afamily.vn · kpophit.com · www.koreaherald.com
[● 11 SOURCES] Bang and others allegedly misled existing shareholders in 2019 by claiming there were no plans for an IPO while preparations were underway. isplus.com · www.sisajournal.com · kpophit.com · baoxaydung.vn · afamily.vn · +6 more
[● 5 SOURCES] Hybe's legal team denies the allegations, stating they have consistently provided objective evidence to clear the doubts. isplus.com · cebudailynews.inquirer.net · www.jawapos.com · acnews.hu
[● 11 SOURCES] Hybe Chairman Bang Si-hyuk and four others have been referred to prosecutors without detention for violating the Capital Markets Act. isplus.com · www.sisajournal.com · kpophit.com · baoxaydung.vn · afamily.vn · +6 more
[● 7 SOURCES] Prosecutors previously rejected two arrest warrant requests for Bang, citing insufficient evidence of necessity for detention. isplus.com · baoxaydung.vn · cebudailynews.inquirer.net · kpophit.com · acnews.hu · +1 more
[● 7 SOURCES] The investigation into the matter lasted approximately 20 to 21 months. isplus.com · www.sisajournal.com · www.seoul.co.kr · www.koreaherald.com · www.jawapos.com · +2 more
[● 3 SOURCES] Police requested an Interpol red notice for former CIO Kim Jung-dong after he fled to the United States. www.sisajournal.com · afamily.vn