HYBE founder Bang Si-Hyuk has been summoned for questioning regarding allegations of unfair trading practices related to the company's initial public offering (IPO) in 2020. This marks the fifth time Bang has been called in for questioning, signaling an escalation in the investigation.

The investigation centers around accusations that Bang misled investors, including venture capital firms, in 2019, prior to HYBE's IPO. It is alleged that Bang falsely stated there were no immediate plans for the company to go public. This prompted investors to sell their shares to a special purpose company (SPC) established by a private equity fund with ties to HYBE executives. However, authorities believe that HYBE was already preparing for its listing at the time.

Following HYBE's successful IPO, the SPC sold its shares, and Bang reportedly received 30% of the profits from the sale, amounting to approximately 190 billion won (USD $137 million). Some reports previously stated the profit around 400 billion won. This arrangement has raised concerns about potential violations of the Capital Markets Act, specifically regarding unfair trading.

The Securities and Futures Commission (SFC) under the Financial Services Commission (FSC) has referred the case against Bang and three former HYBE officials to the prosecution. The SFC stated they would actively cooperate with the prosecution's investigation to thoroughly uncover the allegations.

HYBE has faced scrutiny from multiple regulatory bodies. The National Tax Service (NTS) launched a tax investigation into HYBE over alleged fraudulent securities transactions related to the IPO. Additionally, police raided HYBE's headquarters in Seoul in July to seize documents and materials related to the allegations.

Bang's legal team is expected to argue that there were no violations. It has been reported that the institutional investors, identified as victims, did not file complaints against HYBE or Bang after the IPO. The Financial Services Commission's Securities and Futures Commission considers LB Investment, Alpenluc Capital Management, and Chinese venture capital Legend Capital—early investors in HYBE who sold their shares—as victims.

HYBE has issued a statement, expressing regret for the concerns caused by the reports related to their IPO process. The company stated it is fully cooperating with authorities by submitting relevant materials and providing detailed explanations. HYBE maintains that the IPO was carried out in compliance with relevant laws and regulations.