SEOUL, July 3 -- Hybe chairman Bang Si Hyuk has been questioned by South Korea's Financial Supervisory Service (FSS) as investigations continue into allegations of fraudulent and unfair trading under the Capital Markets Act.

Hybe Labels said Bang answered all questions "truthfully and sincerely."

According to South Korean media reports, the Seoul Metropolitan Police's financial crimes unit recently executed a search and seizure at Hybe headquarters after prosecutors rejected two previous warrant requests.

Police and the FSS are investigating allegations that Bang personally received around 400 billion KRW (approximately RM1.42 billion) from private equity funds under an undisclosed earn-out contract tied to Hybe's initial public offeri...