Bang Si-Hyuk's assets frozen

A Seoul court froze HYBE Chairman Bang Si-hyuk’s shares while investigators probe accusations that he deceived investors and pocketed gains in a deal tied to the company’s stock-market listing, according to a Yonhap report on Thursday.

The Seoul Southern District Court approved the Seoul Metropolitan Police Agency's request last month to provisionally seize Bang's HYBE shares worth 156.8 billion won ($118 million), Yonhap reported. Prosecutors reportedly sought the order before his indictment.

A provisional seizure prevents a suspect from disposing of assets that authorities believe may constitute criminal proceeds until a final ruling. 

 If a court later determines that the assets should be confiscated or an equivalent amount should be collected, the freeze ensures the assets remain available.

 A HYBE official told Yonhap the seizure is a routine procedure and does not indicate a judgment on guilt, adding that the company has cooperated fully with investigators and is awaiting the outcome. 

 The HYBE founder and chair is accused of misleading investors in 2019 by denying the company's IPO plans and persuading them to sell their shares to a special purpose company linked to a private equity fund he was connected with.

HYBE, then called Big Hit Entertainment, went public in 2020. The private equity fund sold its shares after the IPO, and Bang allegedly pocketed approximately 30 % of the earnings, which amounted to around 190 billion won ($131.2 million), under a preexisting deal.

 Police began investigations last year. Bang has since been referred to prosecution on charges of violating the Capital Markets Act.