HYBE Chairman Bang Si-hyuk Banned from Leaving Country on Suspicion of Violating Capital Markets Law

[Financial News] Bang Si-hyuk, chairman of HYBE, who is under suspicion of large-scale unfair trading, has been banned from leaving the country.
According to police on the 1st, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency imposed a travel ban on Chairman Bang on suspicion of violating the Financial Investment Services and Capital Markets Act (FSCMA). The measure was reportedly taken immediately after he returned from the United States in mid-August.
Bang is suspected of notifying investors in 2019 that HYBE had no plans for an Initial Public Offering (IPO), then selling company shares to a Special Purpose Company (SPC) established by a private equity fund (PEF) formed by former HYBE executives. Through this transaction, Bang is believed to have directly gained approximately 190 billion KRW in profit.
In June, police executed a search and seizure at the Korea Exchange (KRX) to secure documents related to the listing review. In July, they also raided HYBE’s headquarters. Subsequently, Bang was summoned for questioning as a suspect on August 15 and 22.
However, since the travel ban was imposed immediately after his return, it is reported that the measure was not due to any additional charges discovered during the investigation.
HYBE has not issued any statement regarding the travel ban.
425_sama@fnnews.com Choi Seung-han Reporter