HYBE Founder Bang Si-hyuk Referred to Prosecutors Over Alleged Pre-IPO Investor Fraud

HYBE founder and chairman Bang Si-hyuk has been referred to prosecutors as a long-running investigation into the company's pre-IPO transactions enters a new stage.

South Korean police referred Bang to the Seoul Southern District Prosecutors' Office over allegations involving transactions with early investors before HYBE — then known as Big Hit Entertainment — went public in 2020.

Police Refer Bang Si-hyuk to Prosecutors

According to Yonhap News Agency and The Korea Times, the Seoul Metropolitan Police Agency referred Bang to prosecutors on suspicion of fraudulent trading under South Korea's Capital Markets Act.

Four other people were also referred in connection with the case, according to Yonhap.

The referral does not mean Bang has been convicted or that prosecutors have decided to indict him. Prosecutors will review the police investigation before determining how to proceed.

What Are the Allegations?

The investigation centers on transactions that took place in 2019, before HYBE's stock-market debut.

Police allege that Bang told existing shareholders there were no plans for an initial public offering, leading some investors to sell their shares to a private-equity-linked entity while preparations for an IPO were allegedly already underway.

Authorities also allege that Bang later received a portion of the proceeds after those shares were sold following the company's listing.

Yonhap reported that police calculated the alleged gains at approximately 263.1 billion won.

Bang Si-hyuk Denies Wrongdoing

Bang has denied the allegations.

His position has been that HYBE's listing process was conducted in accordance with applicable laws and regulations. His legal team has said the allegations will be addressed through the legal process.

Earlier attempts by police to obtain an arrest warrant were rejected by prosecutors, who requested additional investigation. Bang has not been detained.

Why the Case Matters to HYBE and K-Pop

Bang is one of the most influential executives in the global K-pop industry.

He founded Big Hit Entertainment in 2005, and the company's rise alongside BTS eventually transformed it into HYBE, now one of South Korea's largest entertainment companies.

That makes the investigation significant beyond Bang himself. HYBE is home to or associated with some of the biggest names in contemporary K-pop, while BTS remains one of the world's most recognizable Korean music acts.

What Happens Next?

The case now moves to prosecutors, who will review the evidence gathered by police and determine whether formal charges should be pursued.

Until that decision is made — and unless a court ultimately rules otherwise — the accusations against Bang remain allegations.

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Sources: Yonhap News Agency, The Korea Times and Associated Press.