Bang Si-hyuk questioned for 13 hours over $140 million profit allegations

HYBE Chairman Bang Si-hyuk was questioned by police for about 13 hours on allegations of reaping illicit profits by deceiving investors before returning home late Monday night.

Bang left the Seoul Metropolitan Police Agency’s financial crime investigation unit in Mapo District at 11:48 p.m., declining to answer reporters’ questions about whether he had misled investors or what he had said during questioning. Surrounded by bodyguards, he entered a waiting car without comment.

Earlier that morning, Bang appeared before police as a suspect on charges of violating the Capital Markets Act through fraudulent transactions.

Before entering the police station at 10 a.m., he told reporters, “I am sorry for causing concern with this matter. I will faithfully cooperate with today’s investigation.”

Police suspect that Bang and former HYBE executives deceived existing shareholders during the company’s initial public offering (IPO) process by claiming no listing was planned, while in fact arranging for shares to be transferred to a special purpose company under a private equity fund they had created.

Investigators believe Bang earned about 190 billion won ($140 million) in profits under a contract that entitled him to receive more than 30 percent of the proceeds from the sale of shares tied to the IPO.

HYBE, the agency behind BTS and other leading K-pop groups, said in a statement, “It may take some time, but we will fully explain that the listing at the time was carried out in compliance with laws and regulations.”

Police will review Bang’s testimony before deciding the direction of the probe. Special judicial police officers from the Financial Supervisory Service, operating under the supervision of prosecutors, are also examining the allegations separately.

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.