Seoul: Bang Si-hyuk, chairman of the K-pop company Hybe, appeared for police questioning on Monday for the second time in connection with allegations that he earned approximately 190 billion won (US$136 million) through unfair stock trading during the company's listing process. Bang attended the Seoul Metropolitan Police's office in western Seoul to undergo questioning as a suspect for potential violations of the Capital Market Act. This follows his initial questioning last Monday regarding the same allegations.
According to Yonhap News Agency, Bang is accused of misleading investors in 2019 by claiming that he had no plans to pursue an initial public offering (IPO) for Hybe. This allegedly led investors to sell their shares to a special purpose company (SPC) established by a private equity fund linked to him. It is suspected that Hybe was already preparing for the IPO at that time, and Bang allegedly profited 190 billion won when the SPC sold its shares in the company following the IPO.
Police initiated the investigation late last year and conducted a search of the Korea Exchange in June to seize documents related to Hybe's listing. This was followed by a raid on Hybe's headquarters the following month.