Overview

• The Financial Supervisory Service has compiled documents suggesting Bang misled investors in 2019 by denying IPO plans while secretly preparing HYBE for a public listing.
• Authorities allege a private equity fund tied to Bang acquired early shares and granted him 400 billion won through an undisclosed profit-sharing arrangement.
• Under Article 443 of the Capital Markets Act, fraudulent gains exceeding 5 billion won carry prison terms ranging from five years to life.
• The Seoul Metropolitan Police Agency has filed a second search-and-seizure warrant request for HYBE’s Seoul headquarters to secure internal records related to the fraud probe.
• HYBE says it is fully cooperating with the FSS and police as officials also investigate separate insider-trading allegations against a former executive.