According to MBN on October 1, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit banned Chairman Bang Si Hyuk from leaving the country for violating the Capital Markets Act.
Bang is accused of violating the Act by deceiving existing HYBE investors, including venture capitalists, in 2019 by claiming no plans for an initial public offering (IPO) and then selling their shares to an SPC established by private equity funded by HYBE executives.
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Investors then sold their shares, believing his words. However, financial authorities believe that HYBE was undergoing a preliminary IPO then.
After the IPO began, SPC sold its shares, and Bang reportedly reaped approximately 190 billion KRW in illicit profits, including receiving 30% of the sale price under a nondisclosure agreement.
The Capital Markets Act prohibits acts relating to financial investment products, including unlisted stocks, that seek financial gain through lies or fraudulent schemes. Violators of this law are subject to imprisonment for life or at least five years.
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While Bang denies the charges, claiming that “the listing was conducted in compliance with the laws and regulations,” the Financial Crimes Investigation unit questioned Bang as a suspect twice, on September 15 and 22.
K-Netizens supported the ban and hoped for justice to be served.
- “Justice!”
- “Congrats!”
- “See ya!”
- “How much money did he take to get a travel ban.”
- “As they should! Considering he’s always in the states when they call him in for investigation.”
- “Now he can’t go to the states LOL.”
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