Police Conducts Search And Seizure Of HYBE Amid Investigation Into Bang Si Hyuk’s Alleged Fraudulent Stock Transactions

Police have launched a search and seizure operation at HYBE as part of an investigation into alleged fraudulent stock transactions involving chairman Bang Si Hyuk.

On July 24, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency dispatched investigators to HYBE’s headquarters in Yongsan, Seoul, to carry out the raid.

Bang Si Hyuk is under suspicion of allegedly misleading early investors in 2019 by claiming there were no plans for an initial public offering, leading them to sell their shares. However, its alleged that HYBE later proceeded with its public offering, allegedly resulting in Bang making profits worth several hundred billion won [several tens of millions of dollars].

He is also suspected of having those same investors sell their shares to a special purpose company (SPC) set up by a private equity fund, one of whose three registered executives at the time was reportedly an acquaintance of Bang.

Previously, on July 17, police had requested a warrant to raid HYBE’s headquarters. However, controversy arose when the Seoul Southern District Prosecutors’ Office—having taken over the case from financial authorities—asserted investigative authority over the matter on July 21, raising concerns about a potential jurisdictional conflict with the Financial Supervisory Service’s special investigative team.

Source: (A)