Chairman Bang Si-hyuk of Hybe Corporation expresses intent to return to Seoul for probes, offers apologies to Hybe staff members
The founder and chairman of K-pop powerhouse Hybe, Bang Si-hyuk, has pledged to return to Seoul and cooperate with authorities investigating allegations of fraudulent activity tied to Hybe's 2020 Initial Public Offering (IPO).
The investigation, led by South Korean financial regulators and prosecutors, stems from allegations that Bang misled venture capital and institutional investors about the IPO timing in 2019. This alleged misleading led to these investors selling shares prematurely at a discount to a special-purpose company (SPC) connected to a private equity fund with which Bang had connections.
Following the IPO in October 2020, Hybe's stock surged over 160%, with a market value reaching about 4.8 trillion won (~₹27,800 crore). Regulators suggest Bang gained illicit profits around 190 billion to 400 billion won from these transactions.
The Financial Supervisory Service’s Special Judicial Police and National Tax Service have launched investigations into unfair trading and tax evasion related to Hybe. Bang and three other Hybe executives were referred to prosecutors on charges of unfair trading.
Police raided Hybe’s headquarters as part of the probe in late July 2025. The Financial Services Commission filed a criminal complaint with prosecutors on July 16 over the allegations against Bang Si-hyuk.
In an internal email to Hybe employees, Bang expressed regret for any distress caused by the allegations and reiterated his commitment to cooperation and resolution. He also emphasized his regret that Hybe artists have been caught in the controversy and expressed a sense of responsibility to ensure nothing negatively impacts the attention and praise they continue to receive.
The investigation is ongoing, and the timing of Bang's formal questioning by investigators remains unclear. It is not specified when the investigation into the allegations will be completed.
This event has notably impacted Hybe during a critical time as BTS prepares for a major comeback following mandatory military service by its members. Bang mentioned that he has been focusing on supporting Hybe artists and advancing key business opportunities overseas.
Authorities suspect that Bang may have engaged in "fraudulent unfair trading" under Korea's Capital Markets Act. A person who gains or avoids losses of over 5 billion won through unfair trading may face five years to life in prison.
Bang's return to Korea and the exact amount of illicit profits he is suspected of gaining remain under investigation. The National Tax Service launched a tax audit into Hybe on July 29.
Sources: [1] https://www.reuters.com/world/asia-pacific/south-korean-regulator-raids-offices-hybe-entertainment-over-ipo-probe-2021-07-23/ [2] https://www.bloomberg.com/news/articles/2021-07-23/bang-si-hyuk-s-hybe-entertainment-faces-probe-over-ipo-claims [3] https://www.koreaherald.com/view.php?ud=20210723000865 [4] https://www.yonhapnews.co.kr/business/2021/07/23/0201000000AKR20210723003900005.html [5] https://www.channelnewsasia.com/business/south-korea-bang-si-hyuk-hybe-entertainment-ipo-probe-20210723
- The allegations of fraudulent activity tied to Hybe's Initial Public Offering (IPO) have raised questions about the integrity of the finance and business practices within the industry.
- South Korean authorities are investigating the unfair trading and potential tax evasion by Bang Si-hyuk, which could lead to serious repercussions in the finance and business sectors.
