Did he pocket 190 billion? Bang Si-hyuk, 'IPO Suspicion' Police Investigation Today

[Financial News] Bang Si-hyuk, Chairman of HYBE, will be investigated by the police on the 15th regarding allegations that he deceived investors into acquiring shares ahead of an initial public offering (IPO). The Financial Crime Investigation Division of the Seoul Metropolitan Police Agency plans to summon Chairman Bang as a suspect at 10 a.m. to question him about violations of the Capital Markets Act.
According to the police, Chairman Bang is accused of informing existing investors, including venture capitalists, that there was "no IPO plan" while preparing for HYBE's listing in 2019, and then transferring shares to a special purpose company (SPC) established by a private equity fund linked to him. The police view this as a 'fraudulent unfair transaction' under the Capital Markets Act.
Investors believed Chairman Bang's words and disposed of their shares, but the financial authorities believe that HYBE was actually taking preliminary steps for listing at the same time. After the listing became a reality, Chairman Bang reportedly pocketed 30% of the stock sale profits from the private equity fund, earning a total profit of 190 billion won.
The police obtained related intelligence at the end of last year and launched a full-scale investigation, while the Financial Supervisory Service's special judicial police are also conducting a separate investigation under the direction of the prosecution.
Last month, on the 6th, Chairman Bang stated in an internal email, "I am reflecting on whether there were any shortcomings that I failed to address in the process of growth," and "I will explain and resolve all situations to ensure that my personal issues do not burden the company."


425_sama@fnnews.com Choi Seung-han Reporter