By Chirag Sehgal,News18

Copyright news18

HYBE’s founder and chairman, Bang Si-hyuk, appeared before Seoul police on Tuesday morning for questioning in connection with the ongoing investigation involving alleged stock manipulation by him. This marked the first appearance by the HYBE founder since the probe began.
As reported by Kedglobal, Bang interacted with the reporters as he arrived at the Seoul Metropolitan Police Agency building and denied any wrongdoing. He said that he was “deeply sorry for causing concerns” and would cooperate fully with investigators in the case.
Why Was HYBE’s Founder Summoned By The Police?
Bang Si-hyuk, founder and chairman of Hybe – the South Korean entertainment company which handles BTS, has been accused of indulging in fraudulent activities. As reported by allkpop, Bang has been accused of engaging in fraudulent and unfair trading under the Capital Markets Act.
The financial watchdog is investigating Bang over allegations that he misled investors by denying any plans for an IPO. With this, he encouraged them to sell their HYBE shares to a private equity fund (PEF) linked to him. This was around the time when HYBE was secretly preparing to go public. Therefore, when the company eventually did file for an IPO, Bang reportedly benefited through a 30% return-sharing deal with the PEF, a transaction not disclosed during the IPO process.
This means that if found guilty and the gains exceed 5 billion KRW (approximately $3.64 million), Bang could face life imprisonment or a minimum of five years in prison.
HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE.
Bang’s Letter To HYBE Employees
Previously, Bang also wrote an email to the employees of his company and assured them that he would fully cooperate with the investigators. “Over the last year, much has been said and written about me in the press. Increasingly, I believe these events are causing confusion and concern for you, as well as our artists, fans, and partners,” the email read, as reported by Forbes.
“I will fully and transparently work with investigators and put these allegations to rest,” Bang said and then added, “In particular, I feel a deep sense of regret knowing that our members and artists, who should be focused solely on their creative and professional goals, might be suffering because of this situation … I understand how my absence may have contributed to confusion and frustration.”