Bang Si Hyuk, chairman of HYBE, who is accused of deceiving investors into selling shares ahead of the company’s initial public offering (IPO), will be sent to the prosecution this week. This comes about 20 months after the police launched their investigation.
Hong Seok Gi, head of the National Police Agency’s investigation headquarters, stated at a regular press briefing on August 31st, “Chairman Bang Si Hyuk is almost ready to be sent to the prosecution.”
Regarding whether a detention warrant will be requested for Chairman Bang, Hong said, “He will be sent to the prosecution this week, and the decision on whether to detain him will be made then.”
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit is investigating allegations that in 2019, before HYBE’s listing, Chairman Bang deceived existing investors by saying there were no plans for an IPO and sold shares to a certain private equity fund, then proceeded with the listing.
Police believe Chairman Bang illegally gained approximately ₩190 billion KRW (about $138 million USD) by receiving 30% of the profits from the sale, according to a confidential contract signed with the private equity fund in advance.
Police began a preliminary investigation into these allegations in December 2024 and launched a full investigation last July, including a raid on HYBE’s headquarters.
However, the investigation has been prolonged after the prosecution twice rejected police requests for arrest warrants in May.
Currently, it is expected that Chairman Bang will be sent to the prosecution without detention.