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Bang Si-hyuk referred to prosecutors over alleged HYBE fraud
South Korean police have referred HYBE Chairman Bang Si-hyuk and four other individuals to prosecutors without detention on suspicion of fraudulent unfair trading. The investigation, which lasted approximately 21 months, centers on allegations that Bang violated the Capital Markets Act.
Investigators allege that in 2019, while the company (then known as Big Hit Entertainment) was preparing for an initial public offering (IPO), Bang and others misled existing shareholders by claiming there were no immediate plans for a listing. This allegedly induced investors to sell their stakes to private equity funds linked to individuals close to Bang. Following the company's successful IPO in 2020, these funds reportedly earned approximately 263.1 billion won ($190 million) in improper gains. Bang is suspected of having a side agreement to receive roughly 30% of the profits from these sales.
The Seoul Metropolitan Police Agency's financial crime investigation unit has handed the case to the Seoul Southern District Prosecutors' Office. Prosecutors will now determine whether to indict Bang or order further investigation. Bang and HYBE have denied all allegations, maintaining that their actions were based on legitimate commercial agreements and that they have consistently provided objective evidence to clear their names.
Entities
BTS · Bang Si-hyuk · Big Hit Entertainment · HYBE · Seoul Metropolitan Police Agency · Seoul Southern District Prosecutors' Office
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Police referred HYBE Chairman Bang Si-hyuk and four others to prosecutors without detention for alleged fraudulent unfair trading. isplus.com · www.koreatimes.co.kr
- [● 3 SOURCES] Bang allegedly entered a side agreement to receive approximately 30% of the profits from share sales following the IPO. isplus.com · lajornadasanluis.com.mx · www.koreatimes.co.kr
- [● 2 SOURCES] The alleged improper gains from the fraudulent trading amount to approximately 263.1 billion won. isplus.com · www.koreatimes.co.kr
- [● 3 SOURCES] Bang is accused of telling existing shareholders in 2019 that there were no plans for an initial public offering to induce them to sell their stakes. isplus.com · lajornadasanluis.com.mx · www.koreatimes.co.kr
- [● 3 SOURCES] Four other individuals, including HYBE executives and private equity fund representatives, were referred to prosecutors alongside Bang. isplus.com · lajornadasanluis.com.mx · www.koreatimes.co.kr
- [● 2 SOURCES] Bang Si-hyuk and HYBE deny all allegations of wrongdoing, stating they have provided objective evidence to clear the suspicions. isplus.com · lajornadasanluis.com.mx