SEOUL, July 3 — Hybe chairman Bang Si Hyuk has been questioned by South Korea’s Financial Supervisory Service (FSS) as investigations continue into allegations of fraudulent and unfair trading under the Capital Markets Act.
Hybe Labels said Bang answered all questions “truthfully and sincerely.”
According to South Korean media reports, the Seoul Metropolitan Police’s financial crimes unit recently executed a search and seizure at Hybe headquarters after prosecutors rejected two previous warrant requests.
Police and the FSS are investigating allegations that Bang personally received around 400 billion KRW (approximately RM1.42 billion) from private equity funds under an undisclosed earn-out contract tied to Hybe’s initial public offering.
The contract reportedly entitled Bang to receive 30 per cent of the profits earned by these funds following Hybe’s IPO, and the agreement was not included in securities registration statements submitted to authorities, according to allkpop.
The funds involved — including STIC, Estone PE, and New Main Equity — invested in Hybe near the time of its October 2020 listing and sold shares post-IPO, earning significant profits through a profit-sharing arrangement that was not disclosed to public investors, according to MBC.
Hybe Labels previously stated, “It’s true that we provided shareholders with the agreement in question prior to the IPO. We do not believe that there was any violation of laws during the listing process.”
Investigators are examining whether Bang’s receipt of the funds could constitute a breach of trust or bribery if proven to involve unlawful solicitation while he was handling company duties.
The FSS typically hands over its findings to prosecutors once its investigation concludes, with the case proceeding alongside President Lee Jae-myung’s emphasis on fair capital markets and investor protection.
In May, Hybe was also searched by authorities in a separate case involving allegations that a former executive engaged in insider trading for personal gain.
Investigations into the allegations against Bang remain ongoing.
