Bang Si-hyuk (pic), chairperson of K-pop powerhouse Hybe, has been barred from leaving South Korea as police investigate allegations of stock fraud tied to the company’s 2020 listing.
According to local reports, the travel ban was imposed on Aug 11, when Bang returned to Seoul. The Seoul Metropolitan Police Agency’s financial crime investigation unit confirmed it has placed a travel restriction on Bang, who is under investigation for alleged violations of the Capital Markets Act.
Bang is accused of misleading investors in 2019 by denying plans for an initial public offering, allegedly prompting them to sell shares to a private equity fund established by Hybe executives. The fund later offloaded its stake after the IPO, with Bang reportedly reaping about 190bil won (US$135mil) through a prior arrangement.
Bang has denied the allegations, saying Hybe complied with all laws and regulations related to its market debut.
Police opened the investigation late last year. Investigators have raided the Korea Exchange headquarters and Hybe’s office in Seoul to seize documents and questioned Bang twice last month. – The Korea Herald/Asia News Network