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HYBE Chairman Bang Si-hyuk Summoned as Witness in Kakao Executives’ Trial Over SM Entertainment Acquisition
🕑 Added 2025-05-13 05:43:49 +0000 UTCThe Seoul Southern District Court has summoned Bang Si-hyuk, Chairman of HYBE, to testify as a witness in the ongoing trial of current and former Kakao executives accused of violating the Capital Market Act.
According to the legal community on the 13th, the 15th Criminal Division of the Seoul Southern District Court, presided over by Judge Yang Hwan-seung, recently approved the prosecution’s request to summon Bang Si-hyuk as a witness. The witness examination is scheduled for June 20, barring any special circumstances.
Focus of the Testimony
The prosecution stated that Bang Si-hyuk’s testimony is necessary to verify the content of discussions between Bang and Kakao founder Kim Beom-soo during the 2023 SM Entertainment acquisition process.
According to the prosecution, Bang and Kim met on February 14, 2023, to discuss the SM acquisition. The prosecution alleges that Bang asked Kim not to proceed with acquiring SM Entertainment’s management rights. However, despite Bang’s request, Kim reportedly rejected HYBE’s proposal and continued with Kakao’s acquisition efforts.
The prosecution considers Bang Si-hyuk a key witness in the case, emphasizing that the discussions between Bang and Kim are crucial to understanding Kakao’s alleged actions during the acquisition process.
Background of the Case
Kakao is accused of manipulating SM Entertainment’s stock price by raising it above the public offering price of 120,000 won per share in February 2023, allegedly to obstruct HYBE’s attempt to acquire SM Entertainment.
After HYBE’s public offering failed, Kakao and Kakao Entertainment purchased a substantial amount of SM shares, ultimately becoming SM’s largest shareholders.
In response, HYBE submitted a petition to the Financial Supervisory Service (FSS), alleging “abnormal purchasing behavior” by Kakao during the acquisition period. Following the complaint, the FSS referred Kim Beom-soo and other Kakao executives to the prosecution on charges of stock price manipulation.
Why Bang Si-hyuk’s Testimony Matters
Initially, the court did not plan to call Bang as a witness. However, after Lee Jae-sang, CEO of HYBE, failed to appear in a previous trial as a witness, the court reconsidered and decided to summon Bang.
During the earlier trial, the prosecution stated:
“Bang Si-hyuk, as the chairman of HYBE, submitted a petition to the FSS, claiming that Kakao engaged in significant stock purchases to block HYBE’s public offering. It is crucial to investigate what transpired during the meeting between Bang and Kim and what Chairman Bang personally experienced.”
The outcome of Bang Si-hyuk’s testimony could significantly impact the ongoing trial and shed light on the alleged stock manipulation tactics employed by Kakao during the SM Entertainment acquisition process.
https://www.mk.co.kr/news/society/11315316
Comments
ADHDstudent
I listened to HYBE BOY's video and the articles he read said that Kakao's lawyers didn't want Bang PD to testify, calling it irrelevant, so they were trying to prevent him appearing. But now that the current CEO didn't testify, the court has decided to call Bang PD instead to get to the information. My impression is that this is actually what HYBE wanted. Bang PD has first hand information, and this is how they can get it into the record. If Kakao doesn't want Bang PD to give evidence, that's a sign that it's probably not favorable for them.
katesingsr&b
As Mr Bang was the one who was at the meeting isn't his evidence the most important evidence any way, so wouldn't he be the main person to given evidence on that meeting any way eg the main witness to the alleged conversation/discussion?
