HYBE chairman Bang Si-hyuk referred to prosecutors over alleged fraudulent trading
South Korean police have referred HYBE Chairman Bang Si-hyuk and four others to prosecutors over allegations that he misled investors ahead of the entertainment giant’s stock market listing.
The case was transferred to the Seoul Southern District Prosecutors’ Office without detention on 3 Sept, wrapping up a 21-month police investigation into suspected fraudulent trading under South Korea’s Capital Markets Act.
Source: Korea JoongAng Daily
Accused of misleading investors ahead of HYBE listing
According to police, Bang and others told existing shareholders in 2019 that the company had no plans to go public.
Some of these shareholders, including venture capital investors, later sold their stakes to a special purpose company set up by private equity funds associated with Bang and people close to him.
However, investigators believe Big Hit Entertainment, the company behind K-pop powerhouse BTS that later rebranded as HYBE, had already begun taking preliminary steps towards a stock market listing.
Source: @hitmanb72 on Instagram
Police also allege that investors putting money into the private equity funds were told separately that an IPO was in the works.
Big Hit Entertainment eventually listed on the Korea Exchange in October 2020. Police said the scheme generated about 263.1 billion won (around S$248 million) in alleged illicit gains.
Of that amount, Bang reportedly received about 150 billion won (around S$141 million) under an undisclosed agreement that entitled him to 30% of the proceeds.
A court has since ordered assets equivalent to the full 263.1 billion won to be preserved for possible forfeiture.
Source: Newsis via The Korea Times
Bang and HYBE have denied wrongdoing, maintaining that the listing process complied with relevant laws and regulations.
Police investigation lasted nearly two years
Police began looking into the allegations in December 2024 before expanding their investigation the following year.
In July 2025, officers raided HYBE’s headquarters, and Bang was later called in for questioning five times between September and November.
Police sought an arrest warrant for Bang in April 2026, but prosecutors rejected the request, citing insufficient grounds for detention and asking for further investigation.
A second request was rejected in May after prosecutors said the supplementary investigation they had requested had not been completed.
Police ultimately sent Bang and four others to prosecutors without detention on 3 Sept.
The Seoul Southern District Prosecutors’ Office will now review the case and decide whether to indict those involved, request further investigation, or drop the charges.
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Featured image adapted from @hitmanb72 on Instagram.
