Several alleged accomplices are now caught up in the fallout.
Koreaboo
The ongoing police investigation into HYBE Chairman Bang Si Hyuk has taken a major new turn as several people face serious consequences.
According to Ilyo Shinmun on 14 August, the Seoul Southern District Court has approved the freezing of a combined ₩106 billion KRW (about $74.9 million USD) in assets belonging to three Eastone PE officials identified as Bang Si Hyuk’s accomplices in his ongoing fraud allegations.
Bang has been under investigation since December 2024 over allegations that he told existing HYBE investors in 2019 that there were no IPO (initial public offering) plans for the company, convincing them to sell their shares to private equity fund Eastone PE. Eastone PE, founded with the help of a former HYBE director, sold off its entire stake for a massive profit after HYBE’s 2020 IPO. Bang Si Hyuk is accused of secretly receiving 30% of those gains under a prearranged deal.
“There are substantial grounds to determine that the suspects acquired criminal proceeds,” states the Seoul Southern District Court. The freeze comes on top of a nearly identical order against Bang himself, whose own assets — worth ₩157 billion KRW (about $111 million USD) — were frozen back in November. Combined, more than ₩260 billion KRW (about $183 million USD) tied to the case has now been seized.
The filing against the Eastone PE officials also laid out new specifics suggesting HYBE was already preparing for its IPO as early as April 2019, months before Bang allegedly told investors there were no listing plans at all. Investigators say Bang and Eastone PE representatives told investors, “There are no plans to go public now, and it is unclear whether we ever will. Sell your shares to the company we introduce and realize your investment gain.”
HYBE has consistently denied wrongdoing, previously stating, “We believe there were no violations of relevant laws and regulations during the IPO process,” and noting that the freezing of assets “does not constitute a determination of guilt or innocence.”
Despite the latest action, police still haven’t reached a conclusion in the investigation, now ongoing for over a year and a half. Multiple attempts to secure an arrest warrant for Bang Si Hyuk in April and May this year were both rejected by prosecutors, who requested further investigation each time.