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HYBE founder Bang Si-hyuk to be summoned for questioning in stock fraud case

Published: 10 Sep. 2025, 10:46 Updated: 10 Sep. 2025, 23:54

HYBE Chairman Bang Si-hyuk [NEWS1]

Police will summon HYBE Chairman Bang Si-hyuk for questioning for the first time next Monday as part of their investigation into alleged fraudulent securities transactions.

The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit has scheduled Bang to appear at its Mapo office at 10 a.m. Monday, according to Yonhap News Agency on Wednesday. While it is not yet confirmed whether Bang will enter through a private entrance, he is expected to pass through the press line.

Bang is accused of defrauding existing HYBE investors, including venture capital firms, in 2019 — before the company’s initial public offering (IPO). He allegedly told them there were no IPO plans, then arranged for them to sell their shares to a special purpose company set up by a private equity fund connected to him. The incident is being treated as fraudulent transactions case under the Capital Markets Act.

Based on Bang’s statements, investors sold their stakes to the special purpose company. However, at the time, HYBE was already undergoing preliminary steps for an IPO, including applying for a designated auditor, according to financial authorities.

Bang is suspected of receiving 190 billion won ($137 million) in illicit gains, including 30 percent of the resale profit through the private equity fund after the IPO.

Police raided the Korea Exchange in Yeongdeungpo District, western Seoul, on June 30 to secure documents related to HYBE’s IPO review, followed by a search of HYBE's headquarters on July 24.

Separately, investigators at the Financial Supervisory Service with special judicial authority under prosecution oversight are also examining the allegations.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JI-HYE [[email protected]]