Seoul: Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, appeared for police questioning Monday over allegations he took 190 billion won (US$137 million) in unfair profits in the process of the company’s listing. Bang attended the Seoul Metropolitan Police’s Mapo office in western Seoul to undergo questioning as a suspect for potential violations of the Capital Market Act.

According to Yonhap News Agency, Bang is accused of misleading investors in 2019 by claiming he had no plans for an initial public offering (IPO) for Hybe, which allegedly led investors to sell their shares to a private equity fund linked to him. Despite these claims, investors suspect that Hybe was already preparing to go public. Following the IPO, Bang is believed to have gained 190 billion won through the private equity fund’s sale of shares.

Police initiated their investigation late last year and conducted a search of the Korea Exchange in June to collect documents related to Hybe’s listing. The investigation further escalated with a raid on Hybe’s headquarters the following month. Bang expressed regret before entering the police station, stating, “I am sorry for causing concern with my actions. I will faithfully undergo the investigation.”