HYBE Chairman Questioned by Korean Authorities Over IPO-Linked Allegations

Bang Si-hyuk, the creative force behind BTS and chairman of K-pop powerhouse HYBE, appeared before the Financial Crimes Investigation Unit of the Korean National Police Agency on Monday (Sept. 15), marking a major development in his first-ever investigation by authorities.

Bang is suspected of deceiving investors in 2019 by claiming he had no plans to hold an IPO for HYBE, before allegedly inducing them to sell their shares in the company to a private equity fund associated with him. After HYBE went public, the fund reportedly cashed out. Under a pre-arranged shareholders’ agreement, Bang received 30% of the profits — around 190 billion KRW (approximately $13.7 million) — in what police describe as unjust gains. Bang’s representatives have flatly denied the allegations, insisting that no false information was given to early investors and that the profit-sharing terms were proposed by the investors themselves.

The current fraudulent trading allegations began in 2024, with police receiving intelligence on the case late last year before launching an investigation. In late July, police raided HYBE’s headquarters in Yongsan, Seoul, and chairman Bang returned to South Korea on Aug. 11, where he has remained since.

Speaking briefly with reporters outside the agency on Monday, Bang apologized for “causing concern” about the matter, adding, “I will fully cooperate with the investigation today.”

Before his return to the U.S., Bang sent an internal company email stating: “I am fully aware that I cannot allow my personal issues to continue burdening the company and the industry. I will continue to cooperate sincerely with the ongoing investigation and provide a thorough account once again. I hope that this process will clarify the facts, and I will humbly await the authorities’ judgment.”

On the day Chairman Bang was summoned by police, HYBE’s stock closed at 286,500 KRW (approx. $206), down 5,500 KRW from the previous day, showing little significant fluctuation. It still boasts the highest stock price among K-pop entertainment companies, surpassing SM Entertainment’s stock price (141,600 KRW) by more than twofold. HYBE reached its all-time high of 421,500 KRW (approx. $300) on November 16, 2021.

Founded as Big Hit Entertainment, the agency behind BTS, HYBE now operates under a multi-label system. Its roster includes leading groups such as SEVENTEEN, TOMORROW X TOGETHER, and ENHYPEN, as well as NewJeans, which is currently embroiled in a legal dispute over its exclusive contract.

Meanwhile, many Korean media outlets and members of the public focused on Chairman Bang’s noticeably slimmer appearance as he stood before the photo line, showing keen interest in his first police questioning.