Police in Seoul have barred HYBE Chairman Bang Si-Hyuk from leaving South Korea as authorities investigate allegations of improper share transactions worth around 200 billion South Korean won (approx. USD $142 million).
That’s according to reports from multiple local media outlets, including The Korea Herald and Chosun Daily, which reported on Wednesday (October 1) that the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency imposed the travel restriction.
The police did not disclose when the ban took effect or provide additional details about the measure, according to Chosun.
As MBW previously reported, regulators have referred Bang and three other executives to prosecutors for a probe into alleged “unfair trading” tied to the company’s 2020 IPO. Regulators are examining claims that Bang received 30% of the profits, or about 190 billion won ($135m). This amount is significantly less than the 400 billion won ($284m) that was previously reported.
Police summoned Bang for questioning twice last month, on September 15 and 22. When he appeared at the Mapo District office for his first questioning, Bang told reporters he would cooperate fully with the investigation. He told reporters: “I apologize for causing concern with this matter. I will fully cooperate with the investigation today.”
Bang returned to Seoul from the United States in August to face questioning. In an internal email to staff, he acknowledged that his extended absence abroad may have contributed to confusion within the company. “I will return to Korea to fully and transparently work with investigators and put these allegations to rest,” he wrote.
The founder of Big Hit Entertainment in 2005, which rebranded as HYBE in 2021, also expressed regret to employees about the investigation’s impact on the company’s artists: “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.”
HYBE faces a separate investigation by South Korea’s National Tax Service over potential violations related to its IPO. Tax officials visited HYBE’s Seoul headquarters in late July to collect documents and materials, according to multiple Korean media outlets including Korea JoongAng Daily and The Korea Herald.
Korean media Field News reported in August that the NTS deployed two investigation teams to HYBE, launching a 90-day special tax probe. The investigation team is reportedly conducting a detailed analysis of relevant accounting data.
The investigations come as HYBE continues its global expansion. Last week, HYBE launched its India-based subsidiary in Mumbai, marking the firm’s fifth international headquarters. The Mumbai office joins HYBE’s other global headquarters in Japan, America, Latin America, and China.
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