The police investigation into Hybe Chairman Bang Si-hyuk over alleged fraudulent unfair trading is set to be referred to prosecutors this week, wrapping up a probe that has lasted approximately one year and eight months.
Hong Seok-ki, head of the National Office of Investigation under the Korean National Police Agency, stated during a regular press briefing held at the police headquarters in Seodaemun-gu, Seoul, on the 31st, "Chairman Bang Si-hyuk is practically on the verge of being referred," adding, "We expect to send the case to prosecutors sometime this week."
When asked whether an arrest warrant would be requested, he responded, "Whether to process his custody will be revealed when the case is referred this week." It is currently reported that the likelihood of a referral without detention is high.
Bang has been under investigation by the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency's metropolitan investigation division on charges of fraudulent unfair trading under the Capital Markets Act. He is accused of deceiving existing investors, such as venture capitals, by telling them there were no plans for an initial public offering (IPO) prior to Hybe's listing in 2019, and causing them to sell their stakes to a special purpose company (SPC) established by a private equity fund connected to him.
Financial authorities believe that at the time investors deceived by Bang sold their holdings to the SPC, Hybe was already proceeding with preliminary IPO procedures such as applying for designated audits, and Bang subsequently pursued the IPO to rake in approximately 190 billion won in illicit profits.
The police launched a preliminary review into the allegations in December 2024 and began a full-scale investigation by raiding Hybe's headquarters in July of last year. They summoned Bang for questioning five times, and requested an arrest warrant in April of this year, which prosecutors rejected and sent back for supplementary investigation. After re-applying for an arrest warrant in May, prosecutors declined to file it with the court, stating that the request for supplementary investigation had not been fulfilled.
(Photo: Yonhap News)
(SBS Star News, reported by Kang Kyung-yoon)
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