Seoul: The chairman and founder of K-pop powerhouse Hybe, Bang Si-hyuk, has been banned from leaving the country amid a police investigation into allegations of unfair stock trading, sources said.

According to Yonhap News Agency, the Seoul Metropolitan Police imposed the exit ban immediately after Bang returned from the United States on August 11 to cooperate with the investigation. The investigation centers around claims that in 2019, Bang deceived investors by stating he had no plans for an initial public offering (IPO) for Hybe, leading them to sell their shares to a special purpose company (SPC).

Police suspect that Bang Si-hyuk made 190 billion won (US$135.3 million) when the SPC sold its shares once the IPO occurred, under a deal that was allegedly pre-arranged. The investigation began late last year, and Bang has been summoned for questioning twice in the past month.

Bang’s representatives have asserted that all actions taken during the IPO process were in compliance with existing laws and regulations.