Chairman Of The Biggest Kpop Agency Banned From Leaving The Country Amid Ongoing Investigation
Bang Si Hyuk, chairman of HYBE, who is suspected of unfairly profiting by hundreds of billions of won, has been banned from leaving the country.
According to multiple reports on the 1st of October, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit imposed an overseas travel ban on Chairman Bang on charges of violating the Capital Markets Act. The measure is said to have been implemented in August when Bang returned to Korea.
Bang is accused of deceiving pre-IPO investors in 2019 by telling them HYBE had no plans to go public, while secretly selling company shares to a private equity fund (PEF) established by an acquaintance.
Before HYBE went public, Bang reportedly signed a contract with the PEF agreeing to share 30% of the profit from the stake sale. However, this contract was omitted during the Korea Exchange’s IPO review and the Financial Supervisory Service’s securities filing. After HYBE’s listing, the PEF sold its shares, and Bang allegedly received around 190 billion won [$135,482,030] from the profits.
The police, who began investigating late last year after receiving intelligence reports, have since raided the Korea Exchange headquarters in Yeongdeungpo and HYBE’s office to secure documents related to the IPO. Last month, Bang was questioned twice, on the 15th and 22nd.
Meanwhile, HYBE issued a statement in July when news of Bang’s alleged misconduct surfaced: “We apologize for causing concern with news related to our IPO process. We are actively cooperating with financial authorities and the police by submitting relevant documents and providing detailed explanations. Although it may take time, we will fully clarify that the IPO was carried out in compliance with laws and regulations at the time.”
What are your thoughts on this?
Source: (A)
