HYBE Chairman Bang Si-hyuk Referred to Prosecutors Over Alleged Pre-IPO Fraud
HYBE chairman Bang Si-hyuk is facing renewed legal scrutiny over the company's 2020 initial public offering. According to Bandwagon Asia, South Korean police have referred Bang and four other individuals to prosecutors on allegations of fraudulent trading connected to the listing.
Investigators allege that shareholders were misled ahead of the IPO and were not properly informed of HYBE's plans to go public. Authorities say the transactions in question generated approximately 263.1 billion won in improper gains.
What was announced
- Who's under investigation: HYBE chairman Bang Si-hyuk and four other individuals
- What's alleged: fraudulent trading connected to HYBE's 2020 IPO
- Core allegation: shareholders were misled about the company's listing plans before the public offering
- Amount involved: authorities estimate roughly 263.1 billion won in improper gains
- Current stage: case has been referred from police to prosecutors
Bang's response
Bang denies any wrongdoing. He maintains that the transactions were legal and says he did not mislead investors.
What happens next
This referral marks the police stage of the process. Whether formal charges follow is now up to prosecutors. HYBE listed on the Korea Exchange in 2020 and is the parent company of labels representing artists including BTS.