Police reviewing possible “disciplinary action” against HYBE chairman Bang Si-hyuk over alleged unfair IPO transactions

On December 22, K-media Yeonhap News reported that South Korean police asserted they are close to wrapping up the long-running investigation into Bang Si-hyuk. Authorities suspected the company chairman had misled shareholders and profited from an IPO-related deal. Speaking at a regular briefing, an official from the National Police Agency said investigators are still assessing the legal strength of the case.

"We are looking into whether there are any legal shortcomings."

The official added that the overall findings are being carefully rechecked before disposal. Regulators stated that a conclusive decision on how to proceed is anticipated soon. When questioned about possible delays linked to the high-profile defense team appointed by Bang, police denied any outside influence.

"The investigation team is not affected at all," and "We are looking into it because we need to thoroughly review the entire investigation," the official stated.

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Seoul court freezes Bang Si-hyuk's shares amid investigation

This month, a Seoul court has temporarily frozen Bang Si-hyuk's shares as investigators continue reviewing allegations tied to HYBE’s stock market debut. The Seoul Southern District Court approved a request from the Seoul Metropolitan Police Agency on October 16 to provisionally secure Bang’s HYBE holdings.

Bang Si-hyuk (Image via Getty)

The shares are valued at 156.8 billion won, or about 118 million dollars. Reports said prosecutors sought the measure before any formal indictment. The order blocks the sale or transfer of the assets during the investigation period.

A provisional seizure is used to preserve assets believed to be connected to possible illegal profits until a final judgment is reached. If a court later orders confiscation or financial recovery, the freeze ensures the funds remain accessible. The measure itself does not indicate guilt and remains in place pending further rulings.

“The seizure and preservation of the case is a routine procedure and is not a judgment of guilt or innocence,” adding, “We have faithfully participated in the investigation process and provided explanations, and are awaiting the investigative agency’s decision," a HYBE representative said (via MK News).

Bang is accused of denying plans for an initial public offering in 2019 and persuading investors to sell their shares to a special purpose firm tied to a private equity fund linked to him. HYBE, then known as Big Hit Entertainment, went public in 2020. After the IPO, the fund sold its stake, and Bang is alleged to have received roughly 30 percent of the profits under a prior agreement.

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Police began the investigation last year, and Bang Si-hyuk has since been referred to prosecutors on suspicion of violating the Capital Markets Act.

Edited by Shreya Jha