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6d ago

Hybe’s Bang Si-Hyuk Poised for Prosecution Referral in IPO Fraud Inquiry

A scheduled July 16 vote will confirm the FSC’s decision to send fraud charges over undisclosed profit-sharing tied to lock-up circumvention to prosecutors

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Bang Si-hyuk, founder and chairman of Hybe, attends a general meeting of the Federation of Korea Industries on Feb. 20, 2025. (Yonhap)
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Overview

  • The Securities and Futures Commission unanimously recommended on July 9 that Bang Si-Hyuk be referred and will vote to formalize the move on July 16
  • Investigators allege Bang struck secret pre-IPO deals to share 30% of stock-sale profits with a private equity fund, netting him roughly 400 billion won after the 2020 listing
  • Regulators suspect these hidden agreements allowed Bang to bypass mandatory lock-up restrictions for major shareholders
  • Hybe has apologized for public concern, asserts its IPO complied with regulations, and pledges full cooperation with financial and police investigations
  • A separate Seoul Metropolitan Police Agency inquiry continues, with two rejected search warrant requests underscoring investigative hurdles