HYBE Chairman Bang Si-Hyuk In Trouble! Police Conducts 5 Rounds Of Questioning In Stock Manipulation Case

HYBE Chairman Bang Si-Hyuk has landed in serious legal trouble as Korean authorities intensify their investigation into alleged stock manipulation connected to the company’s pre-IPO activities. With multiple

summons, raids, and deepening scrutiny, the case has now become one of the most closely watched financial probes involving a major entertainment giant.

Bang Si-hyuk under legal fire

HYBE Chairman Bang Si-Hyuk is facing mounting pressure as the Seoul Metropolitan Police Agency continues its investigation into alleged violations of the Capital Markets Act. According to police reports on November 18th KST, authorities have so far conducted a total of five rounds of questioning, signaling the seriousness and complexity of the case.Bang Si-Hyuk was most recently summoned for questioning on November 5, followed by two additional sessions within the same week. These came after the first round of questioning held on September 15 and 22, when police initially began probing the accusations surrounding HYBE’s pre-IPO dealings.

What is the case about?

At the heart of the investigation is the allegation that Bang misled existing shareholders in 2019 while purchasing their shares ahead of HYBE’s initial public offering. Despite HYBE actively preparing for its stock market debut at the time, Bang allegedly told shareholders that the IPO would be delayed, a move investigators suspect was intended to influence share acquisition conditions.Authorities are also examining Bang’s suspected involvement in directing the actions of a special purpose company (SPC) tied to a private equity fund formed by HYBE executives. This SPC reportedly sold shares under an agreement stating that 30% of the profit would be paid to HYBE’s largest shareholder. However, investigators believe both this profit-sharing arrangement and the relationship between HYBE executives and the private equity fund were hidden during the company’s 2020 IPO filings—an omission that could constitute a major breach of disclosure laws.Adding further weight to the case, police previously conducted raids on the Korea Exchange and HYBE headquarters on June 30 and July 24 to secure relevant records and evidence. As the investigation progresses with increasing urgency, the entertainment industry is watching closely.For now, Bang Si-Hyuk remains under scrutiny, and the outcome of this probe could have significant implications for HYBE’s leadership and corporate governance moving forward.