The Financial Crime Investigation Division of the Seoul Metropolitan Police Agency confirmed that HYBE Chairman Bang Si-hyuk was summoned twice more over the past weekend following his third investigation on November 5. Authorities stated that additional questioning was necessary as the previous session had not been fully concluded.
During a press briefing, police officials emphasized that the investigation has “progressed significantly”. Bang Si-hyuk maintains that all procedures and regulations were legally followed during HYBE’s IPO and that there are no legal violations on his part. Since September 15, he has been summoned a total of five times.
Bang Si-hyuk, alongside former HYBE executives, was reported to the prosecution on July 16 for violating the prohibition on unfair trading practices. The allegations suggest that during HYBE’s IPO, he profited personally without disclosing key information to investors.
Authorities allege that Bang misled existing investors—including major institutional investors and the National Pension Service—by claiming there were no IPO plans while selling shares to private equity funds (PEFs). Contracts with PEFs reportedly enabled Bang Si-hyuk and associates to receive approximately 30% of profits from post-IPO sales, misleading the original shareholders. Overall, Bang Si-hyuk is said to have gained around ₩120 billion, with the total including associates exceeding ₩190 billion.
Violations of the Capital Market Act carry severe penalties, including 5 years to life imprisonment. The police action marks the highest level of regulatory enforcement possible for individual violations under the law.
Last year, after receiving intelligence on the allegations, the police conducted searches of HYBE and the Korea Exchange in June and July, and prohibited Bang Si-hyuk from leaving the country as the investigation proceeded.
As the investigation continues, the case has drawn significant attention both in South Korea and internationally, given Bang Si-hyuk’s prominence as a music industry executive and HYBE’s high-profile IPO.
Sources: Daum