The South Korean authorities prohibited the president of Hybe Bang Si-Hyuk to leave the country as they wore alleged shareholders related to the initial public offer of the 2020 company.
The Investigation Division of Financial Crimes of the Soul Metropolitan Police Agency confirmed Wednesday that he had imposed travel restriction when Bang returned from the United States on August 11 to collaborate with the investigation. It is now officially forbidden to travel abroad while under investigation for possible violations of the Financial Investment Services and Capital Markets Act.
Investigators suspect that Bang misleading The first investors in 2019 telling the venture capital companies and other shareholders that Hybe did not plan to list the shares publicly. Believing that the company would remain private, these investors sold their participations to a special purposes established by a private equity fund connected to Hybe’s managers. In reality, Hybe was already preparing for his initial public offer, according to the police accusations.
After the start of the IPO process, the company for special purposes has sold the actions acquired at a higher price and is assumed that Bang received 30 percent of profits based on a confidential agreement. The authorities estimate his personal gain to about 190 billion victories (about $ 138 million).
The probe officially opened at the end of last year following internal intelligence suggestions. On June 30, the detectives broke into the exchange of Korea in the Yeongdeungpo district, seizing documents relating to the revision of Hybe’s IPO. A separate research on July 24th targeted the Hybe headquarters in the Yongsan district, where the officers collected additional records.
Bang appeared for the interrogation as a suspect September 15 and again on September 22nd. Before his first session at the investigative unit on the financial crimes of the Seoul Police Agency in the Mapo district, he told journalists: “I apologize for having aroused concern because of this. His legal team claims that all the IPO procedures have respected the relevant laws and refuses any request for offenses.
Pursuant to the law on southern Korea capitals, it is illegal to earn financial earnings by providing false information on unrealized securities. Violations involving illegal profits above 5 billion victories can bring sentences to prison ranging for five years to life. As part of the standard investigative measures for high -profile financial suspects, the travel ban is designed to prevent Bang from escaping from jurisdiction while the authorities build their case.
Hybe, the entertainment conglomerate behind global acts such as BTS, refused to comment on the police activities in progress, noting only that it intends to respect investigative requests. The actions of the company have slightly immersed since the news of the travel ban emerged, reflecting the uncertainty of investors on potential legal impact.
With the police still revision Seized materials and witnesses questioned, the case against Bang could move on to the judicial phase by the end of the year. For now, the outfit ban remains in force, underlining the gravity of the accusations that the founder of Hybe may have abused privileged information for personal profit.
