HYBE’s Bang Si Hyuk Gets Referred To Prosecution

The Seoul Metropolitan Police Agency’s Metropolitan Investigation Unit for Financial Crimes announced on September 3rd that they have sent five individuals, including Bang Si Hyuk, chairman of HYBE, executives, and private equity fund officials, to the Seoul Southern District Prosecutors’ Office without detention.

This comes about 21 months after the preliminary investigation began.

They are accused of hiding the listing plans from existing venture capital investors while preparing for the 2019 listing of Big Hit Entertainment (now HYBE) and inducing them to sell their shares to a private equity fund.

The private equity fund allegedly promised confirmed listings and returns, gathered investors, purchased the shares, and then sold them after the listing, reportedly gaining an unfair profit worth approximately ₩263 billion KRW (about $194 million USD).

A police official explained, “Under the common goal of profiting from listing gains, the management concealed listing information that was exclusively held from existing shareholders to obtain private gains. We determined this as an act disrupting the order of the capital market by damaging its fairness and reliability.”

The police applied for seizure and preservation of the full ₩263 billion KRW (about $194 million USD) in criminal proceeds obtained by the suspects before prosecution and obtained a court decision.

Meanwhile, regarding Kim Jung Dong, former HYBE Chief Investment Officer (CIO), who fled overseas just before the search and seizure, an arrest warrant has been issued, and a wanted notice along with an Interpol red notice has been requested.

Earlier, in April and May, police requested arrest warrants twice, but the prosecution rejected both, citing the need for supplementary investigation.

HYBE denies all charges related to Chairman Bang Si Hyuk and others.