Bang Si Hyuk Barred From Leaving The Country By Police
The police have belatedly revealed that they imposed a travel ban on HYBE chairman Bang Si Hyuk during the ongoing investigation into his suspected fraudulent trading.
On October 1, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency announced that Bang Si Hyuk, who is currently being investigated for a suspected violation of the Capital Markets Act, had been barred from leaving the country.
According to the police, the travel ban was imposed immediately after Bang Si Hyuk returned from a business trip to the United States on August 11.
Last month, Bang Si Hyuk was summoned twice for questioning as a suspect by the police: once on September 15 and once on September 22.
Earlier in the summer, the police began investigating Bang Si Hyuk for allegedly violating the Capital Market Acts by misleading existing investors in 2019 by falsely claiming that there were no plans for HYBE to go public, inducing them to sell their shares to a special purpose company (SPC) established by a private equity fund set up by HYBE senior executives. The police are looking into the possibility that HYBE was already preparing for an IPO (initial public offering) at the time.
After HYBE went public, the SPC sold the acquired shares, and Bang Si Hyuk allegedly received 30 percent of the profit under a prearranged agreement, pocketing approximately 190 billion won (around $135 million).
HYBE previously responded to the allegations by stating, “We complied with all relevant laws and regulations at the time of the listing, and there are no legal issues.”
Top Photo Credit: Xportsnews
