Bang Si Hyuk is facing major backlash as the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit has banned him from leaving the country for alleged violations of the Capital Markets Act.
The controversy erupted on October 1, when reports revealed that Bang deceived investors, including venture capitalists, in 2019. He allegedly claimed there were no plans for an initial public offering (IPO) while secretly selling shares to a special purpose company established by HYBE executives’ private equity.
Investors were misled into selling their shares based on Bang’s assurances. However, financial authorities are probing whether HYBE was in fact preparing for a preliminary IPO at that time.
According to reports, the SPC offloaded those shares post-IPO, allowing Bang to pocket around 190 billion KRW in illicit profits, which included a 30% kickback under a nondisclosure agreement.
The Capital Markets Act prohibits fraudulent activities related to financial products and upholds strict penalties for violators, ranging from five years to life imprisonment.
Despite the allegations, Bang maintains his innocence, stating, “the listing was conducted in compliance with the laws and regulations.” However, he has been summoned for questioning twice so far, on September 15 and 22.
K-Netizens have reacted strongly to the news, expressing support for the ban and demanding accountability.
- “Justice!”
- “Congrats!”
- “See ya!”
- “Now he can’t go to the states LOL.”
The situation continues to develop as Bang awaits further police questioning amid mounting scrutiny.
