2 days ago
Police seek search warrant for HYBE chairman Bang Si-hyuk over alleged stock fraud
SEOUL, July 22 — Police have requested a search warrant for HYBE chairman Bang Si-hyuk in connection with alleged fraudulent trading under the Capital Markets Act, it was reported yesterday.
The warrant application was submitted on July 17 by the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, targeting both Bang and HYBE's headquarters in Yongsan-gu, according to a Chosun Biz report.
Bang is suspected of misleading existing investors, including venture capitalists, about delays in HYBE's IPO plans before its 2019 listing.
He also allegedly facilitated the sale of HYBE executive shares to a special purpose company created by a private equity fund they had set up.
'The prosecution is reportedly reviewing whether to request the search warrant submitted by the police,' the report said.
Police have also asked to transfer the case to avoid overlapping investigations, as prosecutors are already handling a related complaint.
The prosecution received the complaint on July 18 from financial authorities and assigned the case to the Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office.
In early July, Bang was questioned by police and financial regulators over allegations tied to undisclosed earn-out contracts ahead of HYBE's IPO, with the Financial Services Commission later filing a criminal complaint.
HYBE has said it informed investors and pledged full cooperation with authorities.
