Bang Si-hyuk, the chairperson of K-pop giant Hybe, faces a travel ban amid a stock fraud investigation. Authorities imposed the travel restriction on August 11 when Bang returned to Seoul. This measure highlights growing scrutiny of Hybe’s 2020 initial public offering and the conduct of its top executives.
The Seoul Metropolitan Police Agency’s financial crime unit confirmed it restricted Bang’s movements due to alleged violations of the Capital Markets Act. Investigators suspect Bang misled investors in 2019 by denying Hybe’s IPO plans. This alleged misinformation reportedly influenced investors to sell shares to a private equity fund linked to Hybe executives.
According to reports, the private equity fund later sold its shares after the IPO, with Bang receiving about 190 billion won (roughly $135 million) through a prior agreement. Bang has publicly denied these allegations, maintaining that Hybe followed all legal requirements during its public listing process.
The police launched the probe late last year. Since then, they have conducted raids at the Korea Exchange headquarters and Hybe’s Seoul office. During these raids, officials seized documents connected to the investigation. Moreover, Bang was questioned twice last month to clarify his involvement.
This investigation is significant for the K-pop industry, as Hybe remains one of its leading companies. The allegations raise questions about transparency and investor protection in South Korea’s booming entertainment sector. Legal experts suggest that the case could set a precedent for stricter oversight of corporate governance among major firms.
Furthermore, the travel ban limits Bang’s ability to conduct international business, which could impact Hybe’s global expansion plans. Industry watchers are closely monitoring the case for potential repercussions on market confidence and regulatory reforms.
Moving forward, police will continue gathering evidence and questioning relevant individuals. The investigation’s outcome could lead to formal charges if sufficient proof emerges. Meanwhile, Hybe’s leadership faces mounting pressure to demonstrate compliance and restore trust among investors and fans. In summary, Bang Si-hyuk’s travel ban underscores the serious nature of the stock fraud probe. It also signals increased regulatory vigilance in South Korea’s entertainment industry as authorities aim to uphold market integrity and protect stakeholders.
