Police have applied for an arrest warrant for Bang Si-hyuk, the chairman of HYBE, on charges of unfair trading, according to the Seoul Metropolitan Police Agency’s financial crimes investigation division on Tuesday.
The request comes five months after the music industry mogul was last questioned. The authorities emphasized that they will "continue to take a firm stand against crimes that manipulate the market" as they announced the warrant request.
The police first called Bang in for questioning in September of last year. He has since been summoned by the police for questioning five times and is subject to a travel ban.
The chairman is accused of misleading investors of HYBE, then called Big Hit Entertainment, in 2019 by telling them there were no plans for a public stock listing and leading shareholders to sell their shares to a specific private equity fund. Shortly after, the company went public in 2020.
Police suspect Bang allegedly pocketed 30 percent of the capital gains when the fund sold its shares after the initial public offering. He allegedly secured illicit profits of 190 billion won ($129 million) through an undisclosed agreement with the fund.
The Capital Markets Act prohibits financial gain through false statements or deceptive schemes in connection with financial investment products, including unlisted shares. Those who violate the act and pocket proceeds of 5 billion won or more can face a prison sentence of five years to life.
"We are reviewing the legal aspects as we wrap up the final stages of the investigation," said Park Jeong-bo, head of the Seoul Metropolitan Police Agency, during a briefing on Monday.
HYBE is a multinational conglomerate known for managing K-pop acts such as BTS and girl groups Katseye and NewJeans.
The U.S. Embassy in Korea recently sent a letter to the Korean National Police Agency requesting cooperation in allowing Bang to visit the United States, citing reasons including global activities such as BTS’s world tour.
"It is regrettable that an arrest warrant has been filed despite my long cooperation on the investigation," said Bang through his legal counsel. "I will do my due diligence and fully cooperate in all further legal processes to prove my innocence."
The Seoul Southern District Prosecutors' Office will decide whether to approve or deny the warrant application. The court holds an arrest warrant hearing typically two to three days after the prosecutors' office files for an arrest warrant.
Source: https://koreajoongangdaily.joins.co...warrant-for-HYBE-chairman-Bang-Sihyuk/2574017
The request comes five months after the music industry mogul was last questioned. The authorities emphasized that they will "continue to take a firm stand against crimes that manipulate the market" as they announced the warrant request.
The police first called Bang in for questioning in September of last year. He has since been summoned by the police for questioning five times and is subject to a travel ban.
The chairman is accused of misleading investors of HYBE, then called Big Hit Entertainment, in 2019 by telling them there were no plans for a public stock listing and leading shareholders to sell their shares to a specific private equity fund. Shortly after, the company went public in 2020.
Police suspect Bang allegedly pocketed 30 percent of the capital gains when the fund sold its shares after the initial public offering. He allegedly secured illicit profits of 190 billion won ($129 million) through an undisclosed agreement with the fund.
The Capital Markets Act prohibits financial gain through false statements or deceptive schemes in connection with financial investment products, including unlisted shares. Those who violate the act and pocket proceeds of 5 billion won or more can face a prison sentence of five years to life.
"We are reviewing the legal aspects as we wrap up the final stages of the investigation," said Park Jeong-bo, head of the Seoul Metropolitan Police Agency, during a briefing on Monday.
HYBE is a multinational conglomerate known for managing K-pop acts such as BTS and girl groups Katseye and NewJeans.
The U.S. Embassy in Korea recently sent a letter to the Korean National Police Agency requesting cooperation in allowing Bang to visit the United States, citing reasons including global activities such as BTS’s world tour.
"It is regrettable that an arrest warrant has been filed despite my long cooperation on the investigation," said Bang through his legal counsel. "I will do my due diligence and fully cooperate in all further legal processes to prove my innocence."
The Seoul Southern District Prosecutors' Office will decide whether to approve or deny the warrant application. The court holds an arrest warrant hearing typically two to three days after the prosecutors' office files for an arrest warrant.
Source: https://koreajoongangdaily.joins.co...warrant-for-HYBE-chairman-Bang-Sihyuk/2574017
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