Hybe chairman Bang Si-hyuk to face first police questioning over alleged stock fraud

Bang may face reporters at the photo line before entering a Seoul police station next week

Bang Si-hyuk, founder and chairman of K-pop powerhouse Hybe, attends a ceremony marking the 80th anniversary of Korea's liberation from Japan's 1910-45 colonial rule in central Seoul, on Aug. 15. (Newsis)

Hybe Chairman Bang Si-hyuk is set to be questioned for the first time by police at the Seoul Metropolitan Police Agency on Sept. 15 over allegations of stock fraud.

Police could not confirm whether Bang requested a closed-door appearance but said that, in principle, the questioning would be conducted publicly. Unless a private arrangement is granted, Bang is expected to face reporters at the photo line before entering the station.

Bang is accused of misleading early investors by claiming the company had no plans to go public, only to later push ahead with an initial public offering that generated more than 200 billion won ($144 million) in listing gains. Investigators suspect his actions may constitute fraudulent transactions under Korea’s Capital Markets Act.

In June, Seoul police raided the Korea Exchange in Yeongdeungpo, seizing materials related to Hybe’s IPO review. A month later, they also searched Hybe’s headquarters in Yongsan.

In parallel, special investigators from the Financial Supervisory Service, working under the prosecution’s direction, are also probing the case.

The allegations date back to 2019, when Hybe was preparing for its stock market debut. Bang is accused of assuring venture capital firms and other investors that the company had no IPO plans, while arranging for them to sell their shares to a private equity fund set up by an associate. After Hybe went public, the fund sold off its stake and Bang allegedly pocketed 30 percent of the profits under a prior agreement.

Bang returned to Korea on Aug. 11 after a prolonged stay in the United States. In an email to Hybe employees earlier that month, he acknowledged his extended absence was due to “urgent music projects and business expansions overseas,” but said he would return promptly.

He also pledged to fully comply with the investigation.

“As I explained in detail during the financial authorities’ earlier review, I will faithfully participate in the upcoming investigation and clarify the facts once again,” Bang said in the email. “I expect the truth will be revealed through this process, and I will humbly await the authorities’ judgment.”