The police are investigating allegations of capital market law violations against Bang Si-hyuk, Chairman of HYBE, and have begun a raid on HYBE.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that investigators were sent to the HYBE headquarters in Yongsan-gu, Seoul, to conduct the raid starting at around 9 AM on the 24th.
Chairman Bang is accused of deceiving existing HYBE investors in 2019 by claiming there were no plans for an initial public offering (IPO), leading them to sell shares to a private equity fund associated with him.
Chairman Bang later proceeded with the IPO and is reported by financial authorities to have gained unfair profits of 190 billion won, including receiving 30% of the sale profits from the private equity fund.
Meanwhile, it is known that the police requested the transfer of the case to avoid overlapping investigations with the prosecution, which received a complaint regarding the same incident from financial authorities.
The prosecution received the complaint against Chairman Bang from financial authorities on the 18th and assigned the case to the Financial and Securities Crime Joint Investigation Unit of the Southern District Prosecutors' Office in Seoul.
[Lee Da-gyeom, Star Today Reporter]
