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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Seoul, South Korea — July 9, 2025 — HYBE Chairman Bang Si-hyuk is expected to be referred to prosecutors on charges of engaging in fraudulent and unfair trading practices under the Capital Markets Act. South Korea’s financial authorities plan to finalize the enforcement action at the Securities and Futures Commission (SFC) meeting scheduled for July 16.
According to financial regulatory sources, the Capital Markets Investigation and Deliberation Committee (CMIDC) under the Financial Services Commission (FSC) recently reached a decision to recommend Bang’s criminal referral. The matter will be formally reviewed by the SFC next week to determine the level of sanctions.
Bang is accused of misleading early investors—including venture capital firms—during the lead-up to HYBE’s IPO in 2019 by claiming there were no plans for a public listing. Authorities allege that during this period, Bang directed the sale of shares to private equity firms Easton PE and NewMain Equity, both founded by individuals close to him.
Despite public denials of an IPO plan, authorities believe that HYBE was actively pursuing a listing, having already applied for a designated auditor—a required step in the IPO preparation process.
Investigators also found that Easton PE and NewMain Equity entered into a profit-sharing agreement with Bang, under which he would receive 30% of the capital gains upon a successful IPO. This agreement reportedly resulted in personal gains for Bang amounting to several hundred billion KRW (estimated to exceed USD 200 million).
However, this agreement was not disclosed in HYBE’s securities registration statement submitted to the Financial Supervisory Service (FSS) or in documents reviewed by the Korea Exchange during the listing examination. Both HYBE and its IPO underwriters—NH Investment & Securities and Korea Investment & Securities—have stated that they did not include the details in the filings based on legal counsel.
Financial authorities launched an investigation late last year after the issue came to light, and Bang was formally questioned by the FSS in late June. The probe has been ongoing for over six months.
Under Article 178 of South Korea’s Capital Markets Act, it is illegal to use deceptive means, schemes, or devices—or to omit or falsify material information—in connection with the sale or purchase of financial investment products.
The final determination of penalties will be made by the Securities and Futures Commission next week.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
