Hybe Chairman Bang Si-hyuk to Be Referred to Prosecution Over Alleged Investor Deception
Police plan to forward the case this week regarding allegations of illegal profits made prior to the company's IPO.
Quick Look
Hybe Chairman Bang Si-hyuk will be referred to prosecutors this week over allegations he deceived investors into selling stakes prior to the company's 2019 IPO, making nearly 200 billion won in illegal profits.
AI-generated summary
Why It Matters
Police launched an investigation into allegations against Bang in December 2024 regarding events surrounding a 2019 IPO.
SEOUL, Aug. 31 (Yonhap) -- Bang Si-hyuk, chairman of K-pop powerhouse Hybe, will be referred to the prosecution this week for possible indictment on suspicion of deceiving investors into selling their stakes in his company, police said Monday.
"We plan to forward the case to the prosecution within the week," Hong Seok-ki, head of the National Office of Investigation, told a press briefing.
Bang is accused of violating the Capital Markets Act by deceiving investors into selling their stakes in Hybe in 2019, just before the company went public, making nearly 200 billion won (US$145 million) in additional and illegal profits.
Police launched an investigation into the allegations in December 2024 and began a full-scale probe in July of last year, which included a raid on Hybe headquarters.
Their investigation was prolonged after the prosecution requested supplementary investigations while rejecting two arrest warrant requests filed by the police.
Sources close to the issue said the police were expected to refer Bang's case to the prosecution without seeking his detention.
What to Watch
AI outlook โ possibilities, not facts
Police to forward Bang's case to the prosecution within the week.
Very likely ยท Within days
Open Questions
- Will the prosecution officially indict Bang Si-hyuk?
- What specific evidence supports the Capital Markets Act violation charges?
