HYBE Chairman Bang Si-hyuk Forwarded to Prosecutors Without Detention Over Alleged Capital Markets Act Violations

[Anchor]

HYBE Chairman Bang Si-hyuk, who has been accused of deceiving investors and reaping massive illegal profits during the process of HYBE's initial public offering, has been forwarded to the prosecutors. During the 20-month investigation, arrest warrants were dismissed twice, and the police investigation has ultimately concluded without detention.

[Reporter] Cho Min-ki reports.

[Reporter]

The police forwarded HYBE Chairman Bang Si-hyuk to the prosecution today (the 3rd) on charges of violating the Capital Markets Act.

This comes approximately 20 months after the police launched a preliminary investigation in December of the year before last.

Bang and five other HYBE executives are accused of deceiving existing investors who held stakes in 2019, prior to HYBE's listing, by telling them there were no plans to go public, thereby inducing them to sell their shares to a private equity fund established by former HYBE executives.

However, financial authorities concluded that Bang and the others proceeded with the listing afterward and sold all of their shares, pocketing approximately 200 billion won in illegal profits.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit announced that it applied for a pre-indictment attachment of the 263.1 billion won in illegal gains acquired by the HYBE executives and received a full attachment order from the court.

The police have conducted intensive investigations, including raiding HYBE's headquarters in July of last year and summoning Bang as a suspect in September.

In April of this year, the police applied for arrest warrants for Bang twice, but the prosecutors rejected them, citing insufficient substantiation of criminal charges.

Ultimately, Bang was forwarded to the prosecution without detention after a roughly 20-month investigation.

The police explained that one former HYBE chief investment officer involved in the case fled abroad just before the search and seizure, and that they have requested an Interpol Red Notice.

The police stated, "This case is an organized and premeditated financial securities crime," adding, "We will work closely with the prosecution to ensure strict punishment."

(Video Editing: Jung Yong-hwa)
※ Please note: This article was translated by AI and may contain errors.