Bang Si-hyuk, chairman of HYBE and a central figure in South Korea’s music industry, has issued an apology to internal staff amid allegations of fraudulent insider trading. In an email sent to HYBE employees on the 6th, Bang expressed remorse and announced his intention to return to Korea as soon as possible to face authorities’ investigations.

“Due to music production for artists preparing for their comebacks and expansion of our business for the company’s future, I have inevitably spent a significant amount of time abroad in recent years,” Bang wrote in the email. “However, I will put urgent projects and meetings aside to return home quickly and prioritize cooperating with the investigation process.”

Bang emphasized that he had already explained circumstances surrounding the IPO at length during previous financial authority inquiries, promising, “I will sincerely participate in the upcoming investigation and clearly explain the situation once again. I trust that the facts will be clarified through this process and will humbly await the authorities’ judgment.”

He faces allegations of fraudulent trading under the Capital Markets Act, stemming from actions in 2019 before HYBE’s public listing. Bang is accused of misleading preexisting investors by assuring them that an IPO was not planned, then selling shares to a special purpose company set up by a private equity fund linked to himself. Reports indicate that Bang profited around 200 billion KRW from the eventual IPO.

In response, the police raided HYBE’s headquarters in Yongsan, Seoul, on July 24. The Financial Services Commission’s Securities and Futures Commission has already filed a complaint with prosecutors, and the Financial Supervisory Service’s special investigation unit is also looking into the matter. The National Tax Service began a separate tax probe into HYBE this past July.

Bang acknowledged the negative attention, stating, “Various circumstances since last year, along with my own recent issues, have repeatedly put the company and my name in the news for unfortunate reasons. As founder and chairman, I feel a heavy responsibility for the concern I have caused.”

He continued, “I am also deeply sorry that, due to my personal circumstances, staff and artists who should be focusing purely on their creative and business pursuits may suffer direct or indirect harm. I will make every effort to explain and resolve this situation so that my personal issues do not hinder your talents, abilities, or spirit of challenge.”

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=MHN DB, HYBE