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6d ago

Korea’s Securities Regulator to Refer HYBE Founder for Prosecution Over IPO Share Deal

The recommendation follows an FSS probe that found Bang Si-hyuk arranged undisclosed share-transfer agreements before the 2020 IPO to bypass lock-up rules.

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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

  • A Securities and Futures Commission committee voted July 8–9 to refer Bang Si-hyuk and three other HYBE executives for fraudulent securities transactions, with the final decision set for the FSC’s July 16 meeting.
  • Regulators accuse Bang of denying IPO plans in early 2020 to persuade shareholders to sell stakes to a private equity fund before Hybe’s October listing.
  • Investigators allege a clandestine agreement with the private equity fund yielded Bang roughly 200 billion won (US$145.5 million) in post-IPO profits.
  • Authorities suspect the share-transfer arrangement was structured to circumvent post-IPO lock-up restrictions on major shareholders.
  • Hybe has apologized for public concern, pledged full cooperation with authorities and maintains its IPO complied with South Korea’s Capital Markets Act.