HYBE Chairman Bang to return to Korea for probe, expresses 'regret'

HYBE Chairman and Founder Bang Si-hyuk attends the 64th annual meeting of the Federation of Korean Industries in the business lobby's headquarters in Seoul, Feb. 20. Newsis

HYBE Chairman Bang Si-hyuk, who is currently overseas for work, said he will return to Korea to "fully cooperate" with an ongoing investigation into alleged unfair trading practices.

In his first official response to the allegations, he sent an internal email to employees on Wednesday expressing regret over the "confusion and concerns" the controversy has caused.

He said he will return "to address these allegations and alleviate any stress or anxiety these events have caused our community."

"As founder and chairman, I feel a deep sense of responsibility to do everything in my power to ensure nothing takes away from the hard-earned attention and praise your work continues to receive," he wrote.

Bang is currently under investigation by the Securities and Futures Commission under the Financial Services Commission for allegedly misleading investors in 2019.

He is accused of falsely claiming HYBE's initial public offering (IPO) would be delayed, inducing investors to sell their shares to a special purpose company (SPC) established by a private equity fund backed by HYBE executives.

Authorities believe HYBE was already preparing for its IPO at the time, contradicting what was conveyed to investors. After the company went public, the SPC sold its shares, and Bang reportedly received 30 percent of the profit from the sale under a prior shareholder agreement.

HYBE is also facing a separate tax investigation from the National Tax Service over alleged fraudulent securities transactions connected to the company's IPO.

"I am committed to a swift resolution to these matters, so that you may focus on what you do best, creating and sharing entertainment and culture that resonates around the world," he said.