Hybe Chairman Bang Si-hyuk Referred to Prosecutors Over IPO Fraud Allegations

The Seoul Metropolitan Police Agency has referred Hybe Chairman Bang Si-hyuk and four other individuals to the Seoul Southern District Prosecutors' Office for indictment. The group, which includes Hybe executives and private equity fund officials, is suspected of violating the Capital Markets Act in connection with the company's 2020 initial public offering. Police allege that Bang misled investors in 2019 by stating that Hybe, then known as Big Hit Entertainment, had no immediate plans to go public. This allegedly prompted shareholders to sell their stakes to a private equity fund shortly before the company proceeded with the IPO. One source reports that the fund may have paid Bang approximately 200 billion won in a side deal, while another source states the total improper gains generated from the listing were about 263.1 billion won. A court has granted a request to preserve assets equivalent to these alleged gains. The investigation lasted approximately 20 months and included a raid on Hybe headquarters in July 2025. Prosecutors previously rejected two arrest warrant requests for Bang, citing the need for further investigation. Bang and Hybe officials have denied any wrongdoing, maintaining that the transactions were legal. Both center right sources frame the event as a legal proceeding regarding financial misconduct, though one emphasizes the organized nature of the alleged crime.