HYBE chairman a no-show for second time in Kakao founder's stock manipulation trial

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HYBE chairman a no-show for second time in Kakao founder's stock manipulation trial

Published: 11 Jul. 2025, 14:32 Updated: 11 Jul. 2025, 20:00

Audio report: written by reporters, read by AI

Founder and chairman of HYBE Bang Si-hyuk [NEWS1]

Bang Si-hyuk, founder and chairman of HYBE, has again failed to appear as a witness in the stock manipulation trial concerning SM Entertainment.

Bang was scheduled to testify on Friday in a hearing at the Seoul Southern District Court for a case involving Kim Beom-su, founder of Kakao, and others accused of violating the Capital Markets Act when Kakao acquired a majority stake in SM Entertainment in 2023.

However, Bang did not attend, citing a business trip to the United States. He had submitted a similar reason for his absence at the June 20 hearing.

Prosecutors criticized Bang’s repeated nonappearance, asserting that he had no justifiable reason to avoid testifying and requested that the court reschedule the witness examination and impose a fine.

Nevertheless, the court denied the request.

“While we understand the prosecution’s stance, based on the evidence collected so far, it does not appear that Bang’s testimony is essential to reaching a judgment in this case,” the court stated, canceling Bang’s witness summons.

Kim is accused of conspiring with private equity firm One Asia Partners and others to manipulate SM Entertainment’s stock price during HYBE’s tender offer in February 2023. The prosecution alleges that the share price was deliberately inflated above HYBE’s offer price of 120,000 won ($87) to obstruct the acquisition.

Authorities are particularly interested in a meeting between Kim and Bang on Feb. 14, 2023. They believe Bang asked Kim to refrain from joining the battle over SM’s management rights — a request that Kim, who intended to acquire SM, allegedly declined.

The final trial will take place on Aug. 29, which will include the prosecution’s request for sentence, the defense attorney’s final argument and the defendant’s final statement. This time, the defendant will also question Kim.

Usually, the sentence is given one month after the final trial, but because the case carries weight, the court may take more time to reach a conclusion.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE JI-YOUNG [[email protected]]