Unveiling the Allegations: HYBE Chairman Bang Si-hyuk Faces Police Investigation for Unfair Trading Practices
HYBE Chairman Bang Si-hyuk faced questioning by the Seoul Metropolitan Police Agency's financial crime investigation unit regarding alleged violations of the Capital Markets Act's ban on unfair trading. The police accused Bang of deceiving early investors in HYBE, formerly known as BigHit Music, into selling their shares before the company went public. Despite the allegations, no arrest warrant was requested for him.
The police investigation revealed that in 2019, Bang informed existing shareholders that HYBE had no plans for an initial public offering, leading them to sell their shares to a special purpose company linked to a private equity fund associated with him. Subsequently, the fund sold the shares after HYBE's listing in 2020, with Bang allegedly receiving around 30 percent of the proceeds through an undisclosed agreement. Authorities estimated his improper gains at nearly 200 billion won ($145 million).
The Seoul Metropolitan Police Agency's financial crime investigation unit initiated the case in December 2024 and conducted a raid on HYBE's Yongsan headquarters in July of the following year. Despite multiple arrest warrant requests from police being turned down by prosecutors, who sought further investigation, Bang has consistently denied any wrongdoing. Prosecutors are now expected to review the police file to determine whether to press charges against him.
Bang, who founded BigHit in 2005 and oversaw the rise of BTS since their debut in 2013, transitioned to chair HYBE's board while remaining its largest shareholder. He has emphasized that the company's listing process adhered to all legal requirements. As the investigation unfolds, the K-pop industry continues to follow the developments closely.
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