HYBE Chairman Bang Si-hyuk Summoned to Testify in SM Entertainment Stock Manipulation Trial
According to an exclusive report by Maeil Business Newspaper on May 13, the Seoul Southern District Court’s Criminal Division 15 (Chief Judge Yang Hwan-seung) selected Bang Si-hyuk as a witness on May 8 and sent out a formal summons. As a result, unless special circumstances arise, Bang Si-hyuk must appear in court on June 20 for witness examination.
Prosecutors reportedly issued the summons to investigate what discussions took place during a meeting between Bang and Kim on February 14, 2023, regarding HYBE’s attempt to acquire SM Entertainment.
According to the prosecution, Bang met with Kim after HYBE’s negotiations with Kakao over acquiring SM Entertainment management rights broke down, and reportedly said, “HYBE wants to acquire SM Entertainment, please help us.” However, Kakao allegedly continued to avoid giving a response.
The prosecution believes that Bang explicitly requested that Kakao not compete in the SM acquisition, but that Kim rejected this proposal.
During an earlier hearing last year, prosecutors stated, “Bang Si-hyuk filed a petition with the Financial Supervisory Service claiming that Kakao blocked HYBE’s public tender offer by massively buying SM shares. The February 14, 2023 meeting between Bang and Kim is a key point in this case, which is why we’ve summoned him as a witness.”
Kim Beom-soo is accused of colluding with private equity firm Oneasia Partners during the SM acquisition in February 2023 to artificially raise and fix SM‘s stock price above HYBE’s offer price (₩120,000) in order to block the acquisition—a move the prosecution sees as market manipulation.
Previously, Bang Si-hyuk made a public appearance at a shareholders’ meeting in Seoul this past February. He has since been spotted at concerts of HYBE artists, including BTS’s J-Hope and TXT.
This case underscores the intense competition within the K-pop industry and the high stakes involved in corporate acquisitions. Bang’s testimony is anticipated to shed light on the discussions and decisions that influenced the outcome of HYBE’s attempted takeover of SM Entertainment.