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4 clusters · 22 sources · 10 days · First seen · Last updated

HYBE Chairman Bang Si-hyuk referred to prosecutors

Overview

Following a 21-month investigation, South Korean police have officially referred HYBE Chairman Bang Si-hyuk and four other executives to prosecutors on suspicion of fraudulent unfair trading under the Capital Markets Act.

The Seoul Metropolitan Police Agency alleges that in 2019, Bang and his associates misled venture capital investors by claiming there were no plans for an initial public offering (IPO). Authorities claim this deception induced investors to sell their shares to specific private equity funds while the group was simultaneously preparing for the listing. Following the successful listing in October 2020, the shares were sold, resulting in estimated illicit gains of approximately 263.1 billion won.

New reports indicate a potential side deal may have promised Bang approximately 200 billion won, representing 30% of the profits from the post-IPO share sales. In addition to Bang, the referred individuals include other HYBE executives and officials from private equity funds.

While Bang and the other executives were referred to the prosecution without detention, a former Chief Investment Officer, Kim Jung-dong, has been placed on Interpol’s red notice after fleeing to the United States. Although police sought arrest warrants for Bang earlier this year, prosecutors rejected them twice, citing insufficient grounds for detention and the need for further investigation.

A court has granted a request to preserve assets equivalent to the alleged gains. HYBE has maintained its denial of all allegations, asserting that the listing was not finalized during the transactions in question and that they have provided “objective evidence to clear the company of any wrongdoing.”

The case has now been handed to the Seoul Southern District Prosecutors' Office, which will determine whether to proceed with an indictment or order further investigation.

Entities

HYBE · Bang Si-hyuk · Seoul Metropolitan Police Agency · Seoul Southern District Prosecutors' Office · Bang Si Hyuk

Claims

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Coverage disagrees

Sources make claims that cannot both be true. CLSTR reports the disagreement; it does not decide who is right.

Timeline

  1. 6 days ago

    [BUSINESS] 4 sources
    Bang Si-hyuk referred to prosecutors over alleged HYBE fraud

    HYBE Chairman Bang Si-hyuk has been referred to South Korean prosecutors for alleged fraudulent trading involving 263.1 billion won in improper gains prior to the company's IPO.

  2. 9 days ago

    [BUSINESS] 15 sources
    HYBE Chairman Bang Si-hyuk referred to prosecutors over alleged IPO fraud

    HYBE Chairman Bang Si-hyuk and four executives have been referred to prosecutors for alleged investor fraud and violations of the Capital Markets Act involving the company’s 2020 IPO.

  3. 12 days ago

    [BUSINESS] 5 sources
    HYBE Chairman Bang Si-hyuk to be referred to prosecutors over IPO fraud allegations

    South Korean police will refer HYBE Chairman Bang Si-hyuk to prosecutors this week over allegations of fraudulent trading and misleading investors prior to the company's 2020 IPO.

  4. 16 days ago

    [CULTURE] 2 sources
    HYBE Chairman Bang Si Hyuk sparks buzz over slimmer appearance

    HYBE chairman Bang Si Hyuk has sparked online discussion after new photos revealed a significantly slimmer appearance, leading to speculation regarding his weight loss.

Sources

acnews.hu · afamily.vn · baoxaydung.vn · biz.heraldcorp.com · cebudailynews.inquirer.net · elbuentono.com.mx · isplus.com · jawapos.com · k-gen.fr · koreaboo.com · koreaherald.com · kpophit.com · lajornadasanluis.com.mx · lanigua.com.mx · m.imaeil.com · m.koreatimes.co.kr · mbn.mk.co.kr · news.yam.md · robotto.mx · seoul.co.kr · sisajournal.com · sportskeeda.com

This summary has been updated 6 times: see revision history