The police have requested an arrest warrant for HYBE Chairman Bang Si Hyuk.
On April 21, the Seoul Metropolitan Police Agency’s Financial Crime Investigation Division announced that they requested an arrest warrant for Chairman Bang Si Hyuk, who is accused of violating the Capital Markets Act (fraudulent unfair trading).
Chairman Bang Si Hyuk is suspected of deceiving investors by claiming that there were no plans for an IPO before HYBE went public in 2019, thereby inducing a specific private equity fund (PEF) to sell its stake in HYBE, only to proceed with the listing shortly thereafter.
Police believe that, under a private agreement made in advance with the private equity fund, Bang Si Hyuk received 30 percent of the profits from the sale of shares after the IPO, resulting in nearly 200 billion won (approximately $13,585,000) in illicit gains.
Bang Si Hyuk maintains that he did not deceive the initial investors, asserting that the sale was carried out at the request of the investors themselves and that the profit-sharing terms were conditions first proposed by the investors.
Source (1)
Top Photo Credit: Xportsnews