{
  "id": 5240176,
  "title": "Hybe chairman referred to prosecution over alleged deception of shareholders",
  "url": "https://urgent.news/2026/09/03/hybe-chairman-referred-to-prosecution-over-alleged-deception-of",
  "topic": "world",
  "section": "World",
  "published": "2026-09-03T03:58:03.000Z",
  "source": {
    "name": "Yonhap News",
    "slug": "yonhap-news",
    "url": "https://en.yna.co.kr/view/AEN20260903005600315"
  },
  "original_language": "en",
  "account": "Bang Si-hyuk, the founder and chairman of the prominent South Korean K-pop company Hybe, has been referred to prosecutors on charges of deceiving shareholders into selling their shares prior to the company's IPO, according to the Seoul Metropolitan Police Agency.\n\nThe Seoul Southern District Prosecutors Office has been investigating Bang for suspected fraudulent trading under the Capital Market Act. If found guilty, Bang is accused of defrauding investors in 2019, resulting in a profit of 263.1 billion won (US$193.7 million), which he allegedly pocketed through the subsequent IPO.\n\nFour additional individuals have also been referred to the prosecution on the same charge. Police have alleged that Bang manipulated Hybe shareholders into selling their shares to a private equity fund he helped establish between August and October 2019. He reportedly claimed there were no plans for an IPO at that time.\n\nFrom October to November 2019, Bang allegedly lied to investors in the fund, claiming an IPO was being planned to attract more investment. The illegal profits have been preserved for forfeiture under a court order, but Bang has not been physically detained as the prosecution previously rejected two requests for an arrest warrant due to insufficient evidence.\n\nA conviction for making more than 5 billion won in profits through fraudulent financial investment products can result in a prison sentence of at least five years or life imprisonment. The referral to prosecutors came 21 months after the police initiated an internal investigation into the alleged deception.",
  "summary": "SEOUL, Sept. 3 (Yonhap) -- Bang Si-hyuk, chairman and founder of K-pop powerhous...",
  "key_points": [
    "Bang Si-hyuk, Hybe chairman, referred to prosecutors for alleged shareholder deception.",
    "Suspected fraudulent trading under Capital Market Act, profit of 263.1 billion won.",
    "Four others also referred to prosecution for same charge."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}