"Minimum 5-year imprisonment"... Bang Si-hyuk under investigation by Financial Supervisory Service for 'fraudulent unfair trading' allegations

[Financial News]  The Financial Supervisory Service is reportedly investigating Bang Si-hyuk, the founder of HYBE, for allegations of fraudulent unfair trading.

On the 28th, according to the financial investment industry, the Financial Supervisory Service has detected evidence that Chairman Bang misled existing shareholders into selling their shares by claiming there were no plans for an IPO before the IPO, and is investigating under the Capital Markets Act for fraudulent unfair trading allegations.

The Financial Supervisory Service is said to have secured evidence that Chairman Bang's side deceived existing HYBE investors by saying "there is no IPO plan" to sell their shares to a private equity fund (PEF) established by Bang's acquaintance.

According to the industry, Chairman Bang made a contract to share 30% of the share sale profit with a private equity fund (PEF) established by his acquaintance before listing HYBE in 2020. It is known that the money settled by Chairman Bang Si-hyuk after the IPO amounted to 400 billion won. This contract was not recorded in the securities report.

If the allegations are acknowledged, Chairman Bang will face heavy punishment. The current Capital Markets Act stipulates imprisonment for life or at least 5 years if the profit gained or avoided from the violation exceeds 5 billion won. 

A Financial Supervisory Service official said, "We cannot confirm whether an investigation is being conducted on a specific company."


gaa1003@fnnews.com An Gaeul Reporter