A Seoul court has issued an order to freeze about 156.8 billion won ($106.4 million) worth of shares in K-pop powerhouse Hybe held by its chairman, who is under investigation over alleged unfair stock trading, court officials said Thursday.
The Seoul Southern District Court last month approved a prosecution request for asset preservation against Bang Si-hyuk, filed to block him from disposing of his shares in Hybe while the investigation is under way, according to court officials.
The asset preservation order is intended to ensure that assets can be seized if Bang is found guilty and ordered to forfeit criminal proceeds from his charges.
The founder of the label behind world famous K-pop group BTS has been under investigation for allegedly misleading investors in 2019 by denying plans for an initial public offering and prompting them to sell their Hybe shares to a special purpose company (SPC) tied to a private equity fund he was linked to.
Bang is suspected of pocketing some 190 billion won in illegitimate proceeds when the SPC sold its shares in the company once it went public.
The court issued the asset preservation order, while the prosecution has not yet indicted Bang.
An official at Hybe said the court order is a routine procedure, not a verdict.
"We have faithfully cooperated with the investigation, provided our explanations and are awaiting the decision by law enforcement," the official said.
