Police questioned HYBE Chairman Bang Si-hyuk for a third time on Wednesday over suspicions of violating the Financial Investment Services and Capital Markets Act.
The financial crime unit of the Seoul Metropolitan Police Agency said that it was questioning Bang as a suspect on Wednesday morning. It is his third round of questioning, following two public summons in September.
Bang is suspected of misleading investors in 2019 by falsely claiming there were no plans for HYBE then known as Big Hit Entertainment to go public, then selling a stake to a private equity fund. When the label began preparing for an initial public offering (IPO), the fund sold its shares, and Bang reportedly received around 190 billion won ($131 million) in profits from the sale under a prearranged agreement.
Police are closely examining Bang’s statement, the flow of funds around the IPO and the structure of the agreement.
Regarding these allegations, Bang’s side has said that the existing investors also sold their equity after earning large revenue, and that the revenue Bang obtained was a countervailing benefit received for bearing the risk of a put option (stock purchase claim).
Bang faces the charge of violating the Capital Market Act.
