Overview

• The Financial Supervisory Service formally referred its pre-IPO fraud findings to prosecutors on May 28
• Regulators summoned Bang Si-hyuk for questioning in late June over allegations he misled shareholders about 2019 listing plans
• Seoul Metropolitan Police raided the Korea Exchange’s Yeouido offices on July 1 to obtain documents on HYBE’s 2020 listing review
• Under the Financial Investment Services and Capital Markets Act, Bang faces potential sentences of five years to life imprisonment if convicted
• Investigators allege Bang secretly funneled shares into a private equity fund in 2019 and pocketed about 400 billion KRW in undisclosed IPO profits