HYBE Chairman Questioned by Korean Authorities Over IPO-Linked Allegations

Bang Si-hyuk, the originative unit down BTS and president of K-pop powerhouse HYBE, appeared earlier the Financial Crimes Investigation Unit of the Korean National Police Agency connected Monday (Sept. 15), marking a large improvement successful his first-ever probe by authorities.

Bang is suspected of deceiving investors successful 2019 by claiming helium had nary plans to clasp an IPO for HYBE, earlier allegedly inducing them to merchantability their shares successful the institution to a backstage equity money associated with him. After HYBE went public, the money reportedly cashed out. Under a pre-arranged shareholders’ agreement, Bang received 30% of the profits — astir 190 cardinal KRW (approximately $13.7 million) — successful what constabulary picture arsenic unjust gains. Bang’s representatives person flatly denied the allegations, insisting that nary mendacious accusation was fixed to aboriginal investors and that the profit-sharing presumption were projected by the investors themselves.

The existent fraudulent trading allegations began successful 2024, with constabulary receiving quality connected the lawsuit precocious past twelvemonth earlier launching an investigation. In precocious July, constabulary raided HYBE’s office successful Yongsan, Seoul, and president Bang returned to South Korea connected Aug. 11, wherever helium has remained since.

Speaking concisely with reporters extracurricular the bureau connected Monday, Bang apologized for “causing concern” astir the matter, adding, “I volition afloat cooperate with the probe today.”

Before his instrumentality to the U.S., Bang sent an interior institution email stating: “I americium afloat alert that I cannot let my idiosyncratic issues to proceed burdening the institution and the industry. I volition proceed to cooperate sincerely with the ongoing probe and supply a thorough relationship erstwhile again. I anticipation that this process volition clarify the facts, and I volition humbly await the authorities’ judgment.”

On the time Chairman Bang was summoned by police, HYBE’s banal closed astatine 286,500 KRW (approx. $206), down 5,500 KRW from the erstwhile day, showing small important fluctuation. It inactive boasts the highest banal terms among K-pop amusement companies, surpassing SM Entertainment’s banal terms (141,600 KRW) by much than twofold. HYBE reached its all-time precocious of 421,500 KRW (approx. $300) connected November 16, 2021.

Founded arsenic Big Hit Entertainment, the bureau down BTS, HYBE present operates nether a multi-label system. Its roster includes starring groups specified arsenic SEVENTEEN, TOMORROW X TOGETHER, and ENHYPEN, arsenic good arsenic NewJeans, which is presently embroiled successful a ineligible quality implicit its exclusive contract.

Meanwhile, galore Korean media outlets and members of the nationalist focused connected Chairman Bang’s noticeably slimmer quality arsenic helium stood earlier the photograph line, showing keen involvement successful his archetypal constabulary questioning.