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South Korea police seek indictment for HYBE chairman Bang in investor fraud
Authorities said police allege Bang misled investors in 2019 about HYBE’s IPO plans, after which investors sold shares to a private equity fund ahead of the offering.
South Korean police are seeking an indictment of HYBE chairman Bang Si-hyuk, the music tycoon behind K-pop supergroup BTS, over alleged investor fraud tied to HYBE’s 2019 plans for an IPO, according to SCMP Economy and associated reporting. The Seoul Metropolitan Police Agency referred Bang to the Seoul Southern District Prosecutors’ Office, requesting indictment on a charge of violating the Capital Markets Act. Police said the investigation centers on allegations that Bang misled investors in 2019 by indicating HYBE had no immediate plans to go public. Police allege the messaging prompted investors to sell their HYBE shares to a private equity fund shortly before the company proceeded with an initial public offering. Police earlier said the fund might have paid Bang around 200 billion won, or about US$147 million, in a side deal that promised him 30.0% of post-IPO stock sale profits. SCMP Economy also reported that South Korean media said police referred four other people, including HYBE executives and private equity fund officials, to prosecutors as well, asking for their indictment.