Police have sought an arrest warrant for HYBE Chairman Bang Si-hyuk, who is suspected of deceiving investors into selling their shares ahead of the company's initial public offering (IPO).
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency said Tuesday that it had requested an arrest warrant for Bang on charges of fraudulent trading. Bang is accused of telling HYBE investors in 2019 that the company had "no plans to go public," prompting them to sell their stakes to a specific private equity fund, before subsequently taking the company public. Police believe that under a non-disclosed agreement signed in advance with the private equity fund, Bang received 30% of the proceeds from the post-listing sale, reaping roughly 200 billion won ($140 million) in illicit gains.
In response to the police's request for the arrest warrant, Bang's legal counsel said, "It is regrettable that an arrest warrant has been sought despite our sincere cooperation with the investigation over an extended period." The counsel added, "We will faithfully engage in the upcoming legal proceedings and do our utmost to explain our position."
