Seoul: Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, is set to undergo police questioning next week concerning alleged fraudulent securities transactions tied to the company's listing, officials announced on Wednesday.
According to Yonhap News Agency, police are scheduled to question Bang on Monday regarding accusations that he misled investors in 2019 by suggesting that Hybe's initial public offering would be delayed. This alleged misinformation reportedly led investors to sell their shares to a special purpose company (SPC) established by a private equity fund connected to Bang.
The investors proceeded to offload their shares to the SPC, yet financial authorities suspect that Hybe was simultaneously preparing for its public listing. Following the company's eventual debut on the stock market, the SPC sold its shares, with Bang reportedly receiving 30 percent of the profits from the sale as per a prior shareholder agreement.
The police launched their investigation into the matter late last year, conducting a search of the Korea Exchange in June to obtain documents related to Hybe's listing. In the following month, they raided Hybe's headquarters as part of the ongoing inquiry.
The Securities and Futures Commission, operating under the Financial Services Commission, is also conducting an independent investigation into the case. Last month, Bang expressed his intention to cooperate fully with the investigation in an internal email directed to Hybe employees.