Bang Si-hyuk, chairman of K-pop entertainment powerhouse HYBE, underwent his third police interrogation on November 5 as authorities continue investigating allegations that he engaged in fraudulent trading tied to the company's initial public offering.
The financial crimes investigation unit of the Seoul Metropolitan Police Agency summoned the executive to provide additional testimony regarding violations of the Capital Markets Act.
Investigators are examining accusations that Bang deceived investors in 2019 by falsely claiming HYBE had no plans to go public, then arranged for them to sell their shares to a special purpose company established by a private equity fund with which he was affiliated. Police scrutinized his statements regarding intent to deceive, the movement of funds through the transaction, and the structure of his agreement with the private equity vehicle.
According to authorities, while Bang made assurances to venture capital firms and other shareholders that no public listing was planned, HYBE was simultaneously undergoing preliminary IPO procedures. The company had begun applying for a designated auditor, a requirement for going public, during the period in question. When HYBE later proceeded with its public offering in 2020, the special purpose company sold its shares at substantial profits. Bang is suspected of receiving approximately 190 billion won (roughly $131 million) from the transaction, reportedly through a prearranged agreement that entitled him to 30 percent of the capital gains.
This marks Bang's third known interrogation, following two public summons in September. His first questioning session lasted approximately 13 hours, after which he exited the police facility, declining to comment to reporters. Since the investigation commenced in late 2023, authorities have conducted searches of the Korea Exchange in June and HYBE's headquarters in July to gather relevant documentation.
The Seoul Metropolitan Police Agency previously announced it was conducting a legal review regarding potential arrest warrant requests. A travel ban has been imposed on Bang due to the allegations. Meanwhile, HYBE has maintained through official statements that all procedures during the listing process complied with applicable laws and regulations at the time and that the company will fully cooperate with the investigation.
The case represents heightened enforcement action under current leadership priorities to combat securities violations affecting ordinary investors. Financial authorities have determined the situation warrants serious legal consideration, with experts noting that violations of Article 178 of the Capital Markets Act carry minimum penalties of five years imprisonment or potential life sentences for cases involving illicit gains exceeding 5 billion won.
