Authorities Make Official Decision On Bang Si Hyuk’s Fraud Accusations, Netizens Cheer

South Korea’s financial authorities have referred HYBE Chairman Bang Si Hyuk to the prosecution on charges of fraudulent trading under the Capital Markets Act.

On July 16, the Securities and Futures Commission, under the Financial Services Commission, held its 14th regular meeting and announced that a total of nine individuals — including executives and associates from three companies, as well as Bang Si Hyuk — had been reported to prosecutors for violating the Capital Markets Act.

We will continue to closely monitor for any unfair profiteering by major shareholders in order to maintain fairness in the capital markets and protect investor trust. Any violations uncovered will be thoroughly investigated and dealt with strictly.

— Representative from Securities and Futures Commission

The news has instantly gained viral attention in Korea, with netizens leaving explosive comments under a post on TheQoo.

• “The prosecution rejected HYBE search warrants twice. Will they actually go through with it this time?”
• “Bye bye.”
• “Hwaiting!”
• “Please let him get arrested and properly punished.”
• “HYBE really needs to be thoroughly investigated.”
• “This is only happening because the government changed. Seriously…”

According to the financial authorities’ investigation, Bang allegedly lied to existing shareholders in 2020 by claiming that there were no plans for an initial public offering (IPO) ahead of HYBE’s listing. However, he is accused of secretly selling shares through a private equity fund established by an acquaintance, thereby circumventing direct disclosure.

Authorities believe Bang personally gained 30% of the profit from the share sale through this method. These details were reportedly omitted from the securities filings submitted to the Korea Exchange and the Financial Supervisory Service during the IPO screening process.