JOIN OUR WHATSAPP CHANNEL
BTS’ label HYBE’s chairman Bang Si Hyuk summoned to testify as a witness in SM Entertainment stock manipulation case; all we know
HYBE’s Bang Si Hyuk has been summoned to testify in court over SM Entertainment stock manipulation case amid Kakao's takeover. Read here to know all the details.
Bang Si Hyuk, chairman and founder of HYBE Corporation, has been summoned by the Seoul District Court. He is set to appear as a witness in the ongoing legal proceedings. The case involves alleged stock manipulation surrounding SM Entertainment’s 2023 acquisition battle.
According to legal sources, on May 13, Judge Yang Hwan Seung presided over the Seoul Southern District Court's Criminal Agreement Division 15. The court issued a formal summons to Bang Si Hyuk on May 8. It has requested his attendance at a hearing scheduled for June 20. His appearance will be legally required if he does not present a valid reason for absence.
The court is currently handling a high-profile case against Kim Beom Soo. He is the founder of tech giant Kakao, which is facing trial for alleged violations of South Korea’s Capital Markets Act. Prosecutors claim Kim was involved in a scheme to manipulate the stock price of SM Entertainment during the fierce takeover war between Kakao and HYBE in early 2023.
The controversy dates back to February 2023. Kakao and HYBE engaged in a corporate tug-of-war to secure control over SM Entertainment. It is one of the leading entertainment agencies in South Korea. During this period, HYBE had launched a public tender offer with a proposed share price of 120,000 KRW (approximately 85 USD). Prosecutors allege that Kim collaborated with private equity firm One Asia Partners and other affiliates to inflate SM’s stock price beyond that figure. This made HYBE’s offer less attractive and effectively blocked their acquisition attempt.
Central to the prosecution’s case is a private meeting that allegedly took place between Bang Si Hyuk and Kim Beom Soo on February 14, 2023. During this meeting, Bang is said to have urged Kim to refrain from pursuing the acquisition of SM Entertainment. Despite the conversation, Kim reportedly proceeded with Kakao’s strategy to secure a controlling stake in the company.
Prosecutors now want Bang to testify in court to clarify the details of that conversation. They also aim to determine whether any further agreements or attempts at persuasion occurred behind the scenes. His testimony is expected to be crucial in establishing whether Kakao’s actions were carried out independently or in response to discussions with HYBE. Meanwhile, HYBE is home to numerous popular groups, including BTS, SEVENTEEN, ENHYPEN, LE SSERAFIM, TXT, ILLIT, KATSEYE, and others.
