The president of Hybe Bang Si Hyuk appeared in front of the police on September 15 to be interrogated on the accusations of fraudulent negotiation during the company’s iPo trial.
Around 10 in the morning, Bang arrived at the Soul Metropolitan Agency’s financial crimes unit. According to the protocol, he walked on the photo of the press, where journalists pressed him for the comments. Wear a dress and show a calm expression, he said, “I apologize sincerely for having aroused concern for my personal issues. Cooperate faithfully with investigations.” He refused to answer specific questions about collusion with private equity funds, saying that only the details would be addressed during the interrogation.
The accusations derive from 2019, when Bang, according to what reported, told the first investors of Hybe and a risk capital companies that the IPO has not been planned. However, his affiliates presumably sold actions to a company for special purposes connected to him while he was secretly preparing for the IPO. The contracts revealed that Bang would earn 30% of resale profits if the IPO had been successful. Hybe He became public in October 2020 (then known as Bighit), leading to enormous profits. The authorities estimate Bang’s earnings to about 190 billion KRW (about $ 140 million), falling compared to previous ₩ ₩ ₩ ₩ ₩ ₩ 400 billion KRW reports.
In July, the Commission for the titles and future of the Commission for Financial Services referred to the Ministries Publics for the violation of the law on the capital markets. The National Tax Service also launched a tax audit in Hybe. The police further raided HybeYongsan headquarters as part of their probe.
Bang denied illegal, claiming that the requests of investors, not deception, have shaped the agreement and that the terms of sharing the profits have been proposed by the same investors. In a previous and -mail a Hybe staff, he expressed remorse, writing, “As a founder and president, I feel a strong responsibility for the anguish caused. What has started with the mission of modernizing the music industry could sometimes have been perceived as arrogance. I am deeply reflecting on what I may have lost or mistreated.”
The public interest remains high as the case develops, with many who look closely to see how the authorities will proceed and how this will affect Hybereputation.
Sources: Nate, Daum
