Overview

• The Financial Supervisory Service has concluded its probe into allegations that HYBE chairman Bang Si-hyuk misled investors and is fast-tracking the case to prosecutors.
• The Seoul Metropolitan Police Agency conducted a search of HYBE’s Seoul headquarters under a search and seizure warrant as part of its parallel investigation.
• Authorities allege that in late 2019 Bang told shareholders there were no IPO plans, prompting them to sell shares to a private equity fund linked to him.
• Following HYBE’s 2020 public listing, Bang reportedly received 30 percent of the fund’s profits—an arrangement worth about 400 billion KRW ($290 million)—that was not disclosed to investors.
• If convicted under the Capital Markets Act, Bang could face between five years and life in prison; HYBE says it has cooperated fully and vetted all transactions legally.