Seoul: Bang Si-hyuk, the chairman and founder of the prominent K-pop company Hybe, appeared at the Seoul Metropolitan Police's Mapo office on Monday to face questioning over allegations of unfair stock trading. The inquiry centers around claims that Bang secured 190 billion won (approximately US$137 million) in illicit profits during Hybe's stock market debut.

According to Yonhap News Agency, Bang is accused of misleading investors in 2019 by falsely stating that there were no plans for an initial public offering (IPO) for Hybe. This allegedly led investors to sell their shares to a special purpose company (SPC) created by Hybe executives. The investors claim that the company was already preparing for a public listing, and following the IPO, Bang reportedly profited significantly through the sale of shares via the SPC.

The allegations, if proven under the Capital Market Act, could result in severe consequences, including life imprisonment or a minimum prison term of five years for individuals found guilty of making profits exceeding 5 billion won through deceptive practices regarding financial investment products.

In response to the accusations, Bang's representatives have denied any wrongdoing, asserting that the IPO was conducted in compliance with all relevant laws and regulations.

The investigation into the case began in late 2022, with police conducting a search of the Korea Exchange in June to obtain documents related to Hybe's listing. Subsequently, Hybe's headquarters were raided the following month as part of the ongoing probe.