'190 Billion Won in Unjust Profits Alleged' Bang Si-hyuk Appears Before Police... "Sorry for Causing Concern"

Summoned on Suspicion of Violating Capital Markets Act... Public Appearance Stated, "Will Diligently Participate in Investigation"

'Chairman Bang Si-hyuk Arrives at Police Station Amidst Allegations of Fraudulent Trading' (Seoul=Yonhap News) Reporter Kim In-cheol = Bang Si-hyuk, Chairman of HYBE, who is suspected of deceiving investors before an initial public offering (IPO) to sell his shares, is responding to reporters' questions as he appears at the Seoul Metropolitan Police Agency's financial crime investigation unit as a suspect on the 15th. 2025.9.15 yatoya@yna.co.kr

Police are currently investigating Bang Si-hyuk, chairman of HYBE, who has been summoned as a suspect on charges of violating the Capital Markets Act.

The Seoul Metropolitan Police Agency's financial crime investigation unit summoned Chairman Bang at 10 a.m. to inquire about allegations that he deceived existing investors before HYBE's initial public offering (IPO) to sell their shares.

Arriving at the Seoul Metropolitan Police Agency's Mapo building around 9:55 a.m. in a navy suit, Chairman Bang told reporters, "I apologize for the concern caused by my actions," adding, "I will diligently participate in today's investigation."

When asked questions such as, "Is it true that you asked investors to sell shares during the IPO process?" and "Is it true that you said there were no plans for listing?", he replied, "I will explain during the investigation."

According to the police, Chairman Bang is suspected of violating the Capital Markets Act by deceiving existing HYBE investors, including venture capital firms, in 2019 that there were no plans for listing, and then arranging for them to sell their shares to a private equity fund (PEF) affiliated with him, referred to as Company A.

Investors claim that they sold their shares believing Chairman Bang's statements, but HYBE was actually proceeding with the preliminary procedures for an IPO during that period.

The police believe that after the IPO process was completed, Chairman Bang received 30% of the profits from the stock sale from PEF Company A, thereby pocketing 190 billion won in unjust profits.

The police initiated the investigation late last year after receiving relevant intelligence, and special judicial police officers from the Financial Supervisory Service, under the prosecution's direction, are also separately looking into these allegations.

According to industry sources, Chairman Bang's side maintains that the existing investors also sold their shares after making significant profits, and that the profits he obtained were in return for bearing the risk associated with put options. It is expected that he will focus on explaining this position during the police investigation. Yonhap News