Amid the ongoing investigation into alleged pre-IPO stock fraud by Bang Si-hyuk, the founder and chair of K-pop powerhouse Hybe, police have summoned him for questioning five times, according to reports on Tuesday.
The Seoul Metropolitan Policy Agency’s financial crime investigation unit questioned Bang on Nov. 5 and has since summoned him two more times for additional questioning.
Bang has been quizzed over allegations that he misled investors in 2019 by denying plans for Hybe’s IPO and inducing them to sell their Hybe shares to a special purpose company linked to a private equity fund connected to him.
Following Hybe’s public listing, the private equity fund sold its shares, and Bang is accused of pocketing approximately 30 percent of the proceeds, profiting to the tune of around 190 billion won ($129 million) in unfairly from the sale, which was conducted under a preexisting deal.
Police began investigating the case late last year. As part of an investigation into alleged irregularities involving Bang, police searched the Korea Exchange, South Korea’s stock market operator, on June 30 to seize evidence related to the K-pop agency’s 2020 stock market debut. On July 24, officials also raided Hybe’s headquarters in Seoul’s central Yongsan-gu.
Hybe declined to comment on the case, noting that it is an ongoing police investigation.
During the SMPA’s regular press briefing Monday, an official said the investigation has made “considerable progress,” declining to provide further details.
Source: The Korea Herald
