Will Bang Si-hyuk get arrested in unfair trading case?
What's the story
The investigation into HYBE chairman Bang Si-hyuk is reportedly nearing its conclusion, with police in Seoul indicating that the legal review is "almost complete." The case, which has been ongoing for over a year, centers on allegations of "fraudulent unfair trading." Commissioner Park recently stated, per EDaily, "The legal review is nearly complete. We believe a conclusion could be reached in the not-too-distant future." The investigators are reviewing whether an arrest warrant should be issued.
Investigation details
Bang misled shareholders in 2019
The investigation into Bang has been ongoing for over a year, during which he has been questioned as a suspect five times. Police have also conducted several raids, including at HYBE's headquarters and the Korea Exchange, to collect evidence related to the company's IPO process. The main allegation against Bang is that he misled existing shareholders in 2019 about the timing of HYBE's listing on the stock exchange.
Alleged misconduct
Bang profited around 190 billion KRW
Investigators believe that Bang may have suggested a delay in HYBE's listing, even though internal preparations were ongoing. This allegedly allowed him to purchase shares at a lower price, resulting in profits of approximately 190 billion KRW (around $126 million USD). There are also suspicions involving a private equity fund associated with HYBE insiders. Bang is accused of encouraging shareholders to sell their stakes to a special purpose company linked to that fund.