HYBE Chairman Bang Si Hyuk has been summoned and questioned by the Financial Supervisory Service (FSS) over alleged fraudulent trading violations tied to HYBE’s IPO. This marks the first time since late 2023—when Kakao’s Kim Beom Su was summoned—that the FSS has launched an official investigation into a top executive of a major conglomerate.
According to sources in the finance and entertainment industries, Bang appeared at the FSS late last month to respond to suspicions that he misled investors about HYBE’s IPO intentions—only to proceed with listing preparations behind the scenes.
At the heart of the controversy is the allegation that Bang told early investors and venture capital firms there were no plans for an IPO, which influenced them to sell their shares to a private equity fund (PEF) established by an associate of his. Around the same time, HYBE had reportedly begun the IPO process by applying for a designated external auditor—a required step in the listing process.
Adding to the controversy, Bang is accused of agreeing to receive 30% of the profits made by the PEF through share sales—a deal he allegedly failed to disclose in HYBE’s official securities filings. Reports estimate that Bang collected roughly 400 billion KRW (approx. 295 million USD) through this undisclosed agreement.
The FSS has reportedly concluded that Bang committed fraudulent trading. Further investigation is underway to determine whether the case will be escalated to the Securities and Futures Commission (SFC) for administrative penalties and handed over to pRosécutors for potential criminal charges. A fast-track referral remains a possibility.
Currently, the investigation is proceeding on two tracks, with both the FSS and the police involved. The Seoul Metropolitan Police’s Financial Crimes Division has attempted twice to obtain search warrants through the Seoul Southern District PRosécutors’ Office, but both requests were denied.
Chairman BANG’s representatives stated that he faithfully explained the facts during the investigation. A HYBE spokesperson added, “As far as we know, Chairman Bang cooperated fully with the authorities and addressed all questions with sincerity.”
>> BTS Comeback in Jeopardy? Public Pushes for Suga to Be Banned From KBS Shows
Source (1)
