South Korean prosecutors are currently reviewing a search and seizure warrant request for HYBE Chairman Bang Si Hyuk, who is under investigation for suspected violations of the Capital Markets Act.
According to a Yonhap News report on July 21st, the Seoul Metropolitan Police Agency applied for a warrant on July 17th to search HYBE’s headquarters in Yongsan as well as Chairman Bang’s personal premises.
Chairman Bang faces charges of fraudulent and unfair trading under the Capital Market Act. The allegation is that in 2019 he deceived investors, such as venture capitalists, by suggesting the public offering would be delayed and then induced them to sell their shares to a Special Purpose Company (SPC) established by a private equity fund (PEF) that was founded and financed by HYBE executives before HYBE’s IPO.
Prosecutors are now deciding whether to approve the warrant request submitted by the police.
The police have also requested that the case be transferred to the prosecution to prevent overlap, as financial authorities recently filed a complaint involving the same allegations.
The complaint was officially received by prosecutors on July 18th and has since been assigned to the Financial Securities Crime Joint Investigation Unit at the Seoul Southern District Prosecutors’ Office.
>> Bang Si Hyuk and 3 HYBE Executives to Be Criminally Charged
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