Bang Si-hyuk. (Photo credit: HYBE)

 

 

[Alpha Biz= Kim Jisun] HYBE Chairman Bang Si-hyuk has recently undergone questioning by South Korea's Financial Supervisory Service (FSS) over allegations of unfair trading during the company’s IPO process. The investigation centers around claims that Bang misled early investors in 2019 by stating there were no IPO plans—leading them to sell their shares to a private fund reportedly established by one of Bang's acquaintances.



It is alleged that Bang agreed to share 30% of the post-IPO capital gains from the sold shares, eventually receiving approximately 400 billion KRW (roughly $290 million USD). This arrangement was not disclosed in HYBE’s securities filings, prompting regulatory concerns about potential fraudulent trading practices.



As news of the investigation broke, HYBE’s stock closed down 4.75% at 290,500 KRW on June 3. The FSS is currently determining whether Bang’s actions constitute "fraudulent unfair trading" under Korean financial law.

 

 

 

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