It was belatedly confirmed that HYBE Chairman Bang Si-hyuk was investigated by the Financial Supervisory Service (FSS) on suspicion of “fraudulent unfair trading” under the Capital Markets Act.
According to sources in the financial investment and entertainment industries on the 3rd, Chairman Bang appeared before the FSS for questioning late last month. This marks the first time the FSS has summoned a major conglomerate head since Kakao’s Kim Beom-su was questioned late last year.
Bang is suspected of having sold his shares to a private equity fund (PEF) established by an acquaintance after telling investors, prior to HYBE’s IPO, that there were no plans for a public listing. At the time, however, HYBE was reportedly in the process of applying for a designated auditor — a key step in preparing for an IPO.
The private equity fund in question had an agreement to share 30% of the profits from the share sale with Chairman Bang. He is reported to have received around 400 billion won through this arrangement. However, the details of this deal were reportedly omitted from HYBE’s securities registration statement. The FSS viewed this as a case of fraudulent unfair trading and has launched a further investigation.
Previously, there were reports suggesting that the FSS might fast-track the case and refer Bang to the prosecution, but the agency ultimately decided to carry out its own internal investigation first. Sanctions through the Financial Services Commission’s Securities and Futures Commission, as well as a possible referral to prosecutors, remain on the table.
Investigations into Chairman Bang are currently being conducted by both the police and the FSS. The Financial Crimes Investigation Division of the Seoul Metropolitan Police Agency recently applied for search warrants against Bang twice, but the Seoul Southern District Prosecutors’ Office reportedly rejected both requests.
In response, HYBE stated, “We have sincerely explained the matters the financial authorities inquired about.”
Meanwhile, on the afternoon of the 2nd, Seoul National University held a groundbreaking ceremony for a new cultural and arts complex funded by a 5 billion won donation from Chairman Bang. He had made the donation in January of last year, but was unable to attend the ceremony due to overseas commitments. At the time of his donation, Bang said he wanted to “give back to society for the help he had received.”
(SBS Entertainment News | Kang Kyung-youn)