Overview

• A search and seizure warrant issued by the Seoul Southern District Court on July 23 was carried out the next morning at HYBE’s Yongsan district offices.
• Investigators are examining alleged late-2019 share sales orchestrated by Bang Si-hyuk and other executives that reportedly yielded nearly 400 billion KRW before the October 2020 IPO.
• Regulators from the Financial Supervisory Service and the Securities and Futures Commission referred the case to prosecutors in May and July after uncovering potential breaches of the Capital Markets Act.
• HYBE has denied all wrongdoing, pledged full cooperation with investigators, and urged employees in an internal memo to maintain normal operations during the inquiry.
• If convicted of unfair trading for gains exceeding 5 billion KRW, Bang Si-hyuk could face between five years’ imprisonment and life under South Korean law.