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HYBE chairman faces second round of police questioning for insider trading allegations during IPO process

Published: 22 Sep. 2025, 12:45 Updated: 22 Sep. 2025, 14:46

HYBE Chairman Bang Si-hyuk appears at the Financial Crimes Investigation Division of the Seoul Metropolitan Police Agency in western Seoul on Sept. 15. [YONHAP]

Bang Si-hyuk, chairman of K-pop powerhouse HYBE, was summoned for a second round of questioning by police Monday over allegations that he gained nearly 200 billion won ($143.6 million) in unfair profit through insider dealings ahead of the company’s IPO.

Bang appeared at the Seoul Metropolitan Police Agency in Mapo District, western Seoul, at 10 a.m. Monday for questioning as a suspect, according to police. This marks his second appearance following a public summons on Sept. 15.

Bang is accused of misleading early investors, including venture capital firms, in 2019 by claiming HYBE had no plans to go public. Based on that information, the investors reportedly sold their shares to a special purpose company (SPC) set up by a private equity fund founded by HYBE executives.

However, HYBE was allegedly already undergoing pre-IPO procedures at the time, casting doubt on the legitimacy of Bang’s assurances.

After HYBE's IPO proceeded, the SPC reportedly sold off its shares. Under a private agreement with the SPC, Bang allegedly received 30 percent of the profits from the sale, amounting to an estimated 190 billion won.

The police raided the Korea Exchange in Yeongdeungpo District, western Seoul, on June 30 and seized documents related to HYBE’s IPO screening process. Investigators also searched HYBE’s headquarters in Yongsan District, central Seoul, on July 24.

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 JEONG HYE-JEONG [[email protected]]