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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, South Korea — A South Korean court has issued a pre-indictment asset preservation order freezing HYBE Chairman Bang Si-hyuk’s shares amid an ongoing investigation into allegations of fraudulent stock dealings.
According to Yonhap News and other outlets on December 4, the Seoul Southern District Court accepted a request on November 19 to freeze Bang’s HYBE shares valued at approximately KRW 156.8 billion. The measure, known as chujingbojeon (pretrial confiscation preservation), prevents a suspect from disposing of assets that may later be subject to forfeiture if deemed proceeds of a crime.
While illicit profits are normally subject to confiscation, authorities may instead seek equivalent-value assets if the original gains have been consumed or hidden. The freeze is therefore intended to ensure potential recovery should the court ultimately order forfeiture.
The request was reportedly filed by the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit and forwarded by the Seoul Southern District Prosecutors’ Office.
HYBE commented that the order is a “routine procedural step and not a determination of guilt,” adding, “We have cooperated fully with investigators and provided all necessary explanations. We await the outcome of the investigation.”
Bang Si-hyuk is suspected of misleading investors in 2019 by falsely stating that HYBE (then Big Hit Entertainment) had no plans to go public, thereby inducing a private equity fund to purchase shares. Police believe Bang had a secret agreement with the fund entitling him to 30% of the post-IPO share sale profits, resulting in an estimated KRW 190 billion in unjust gains after HYBE later went public.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
