South Korean police have imposed a travel ban on HYBE chairman Bang Si Hyuk as part of an ongoing investigation into alleged violations of the Capital Markets Act. The Financial Crimes Investigation Unit of the Seoul Metropolitan Police confirmed that he is restricted from leaving the country while the probe continues.
The case centers on suspicions dating back to 2019, before HYBE’s IPO. Authorities allege Bang told existing shareholders there were no listing plans while preparations were secretly underway. This reportedly led some investors to sell their shares to a special purpose company tied to a private equity fund created by HYBE executives. After the IPO, those shares were sold for massive profits, with Bang allegedly securing around 190 billion won—roughly 138 million USD—through an agreement that funneled 30% of the gains to him as the company’s largest shareholder.
Investigators became aware of the situation late last year and have since conducted raids at the Korea Exchange and HYBE’s headquarters. Bang has already faced two rounds of questioning in September as a suspect. HYBE has denied wrongdoing, maintaining that all procedures during its IPO were compliant with legal regulations.
For now, the travel ban means Bang Si Hyuk is firmly grounded in Seoul until authorities finish digging into what could be one of the industry’s most scrutinized financial controversies.
