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HYBE chairman summoned to testify in Kakao founder's stock manipulation trial

Published: 13 May. 2025, 13:27

Bang Si-hyuk, chairman of HYBE, right, is seen attending a Federation of Korean Industries meeting in Yeongdeungpo District, western Seoul on Feb. 20. [YONHAP]

Bang Si-hyuk, chairman of entertainment giant HYBE, has been summoned to testify in the stock manipulation trial of Kakao founder Kim Beom-su, who is accused of violating Korea’s Capital Markets Act concerning the acquisition of SM Entertainment.

The Seoul Southern District Court sent a subpoena to Bang on Thursday, according to legal sources on Tuesday. Barring exceptional circumstances, he is expected to appear in court on June 20.

Kim is accused of colluding with private equity firm One Asia Partners and others to inflate SM Entertainment’s stock price above HYBE’s public tender offer of 120,000 won ($84.5) per share from Feb. 16 to 17 and Feb. 27 to 28, 2023. Prosecutors allege the price manipulation was intended to block HYBE’s takeover attempt and secure Kakao’s acquisition of SM.

Through Bang’s testimony, prosecutors aim to probe what discussions, if any, took place between him and Kim during Kakao’s bid to take over SM.

The two met on Feb. 14, 2023, to discuss the acquisition, according to investigators. Bang is said to have requested that Kim refrain from pursuing SM’s management rights, a request Kim allegedly declined.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HYEON YE-SEUL [[email protected]]