Amid the ongoing investigation into alleged pre-IPO stock fraud involving Bang Si-hyuk, the founder and chairman of K-pop giant HYBE, police have reportedly summoned him for questioning five times.
The Seoul Metropolitan Police Agency’s financial crime investigation unit questioned him on November 5 and has since called him in two more times.
According to police reports dated November 18 KST, authorities have now conducted a total of five rounds of questioning, reflecting the seriousness and growing complexity of the case. With repeated summons, raids, and increasing scrutiny, the investigation has become one of the most closely followed financial probes involving a major entertainment company.
Bang is under investigation for allegedly misleading investors in 2019 by downplaying HYBE's intentions to go public. He is suspected of pressuring investors to sell their stock to a special purpose company affiliated with a private equity fund that he controls.
Two more summonses were issued after officials disclosed that the second round of questioning on November 5 was not finished. Bang was first interrogated on October 15 and October 22.
After HYBE eventually went public, the private equity fund sold its shares. Bang is accused of receiving about 30 per cent of the profits—around 190 billion won ($129 million)—through a preexisting agreement, which authorities believe may have been obtained unfairly.
Also read: Bang Si-hyuk faces his biggest test yet, was BTS’ global boom ‘Predictable’?
Adding to the gravity of the investigation, police previously raided the Korea Exchange and HYBE headquarters on June 30 and July 24 to seize documents and evidence. With the probe intensifying, the entertainment world is keeping a close watch.
Bang Si-hyuk is currently the subject of intense scrutiny, and the investigation's conclusion may have a significant impact on HYBE's future corporate governance and leadership.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
