Seoul: Police investigating allegations of fraudulent stock deals by Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, raided the company's headquarters in Seoul on Thursday. The Seoul Metropolitan Police Agency confirmed that investigators were dispatched to Hybe's head office in the Yongsan district to seize materials pertinent to the allegations.
According to Yonhap News Agency, Bang Si-hyuk is accused of misleading investors in 2019 by asserting that Hybe had no plans to go public. This led investors to sell their shares to a private equity fund created by Hybe executives. Subsequent police investigations suggest that Bang proceeded with an initial public offering, allegedly resulting in about 190 billion won (US$140 million) in illicit profits. This includes 30 percent of stock sale profits from the private fund.