South Korea’s Financial Supervisory Service (FSS) is investigating HYBE Corp. Founder and Chairman Bang Si-hyuk over allegations of fraudulent conduct related to the company’s initial public offering.

According to investment industry sources on Wednesday, the FSS has obtained evidence suggesting that Bang misled early investors by stating that an IPO was not in the works, even as he actively pursued listing preparations.

The agency is investigating potential violations under the Capital Markets Act.

In 2020, before HYBE went public, Bang reportedly entered into a deal with a private equity firm (PEF) founded by an acquaintance, agreeing to receive 30 percent of gains from a stake sale.

After HYBE’s IPO, Bang collected 400 billion won ($290.9 million) under the agreement—though the deal was not disclosed in the company’s IPO filings.

The FSS believes Bang’s team may have told existing investors that listing was impossible, while simultaneously filing for audit certification—a key step in going public. Some investors say they sold their shares to the PEF based on those assurances.

“We cannot confirm any details about ongoing investigations or specific companies under scrutiny,” the FSS said.

[ⓒ 매일경제 & mk.co.kr, 무단 전재, 재배포 및 AI학습 이용 금지]