Why was Bang Si-hyuk referred to prosecutors by Seoul police?

Police accused him of deceiving early investors in HYBE, then BigHit Music, into selling their stakes before the company went public. They said he misled shareholders about an IPO and was involved in unfair trading under the Capital Markets Act.

How much money are authorities saying Bang Si-hyuk may have gained from the HYBE share sale case?

Financial authorities put his improper gains at nearly 200 billion won, or about $145 million. Police believe he collected roughly 30 percent of the proceeds under an undisclosed agreement.

Man behind BTS referred to prosecution over allegedly lying to shareholders

Q: What has Bang Si-hyuk said in response to the allegations and what happens next?

Bang has denied wrongdoing and said the listing followed the relevant laws and regulations. Prosecutors are expected to review the police file before deciding whether to indict him.

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Summary

Seoul police referred Bang Si-hyuk, chairman of HYBE, to prosecutors Thursday over allegations that he lied to early investors before the company’s listing. He is accused of unfair trading under the Capital Markets Act, and police did not seek an arrest warrant. Financial authorities put his alleged improper gains at nearly 200 billion won, while Bang has denied wrongdoing. Prosecutors are expected to review the police file before deciding on indictment.

Key Facts

Police alleged that in 2019 Bang told existing shareholders that the company had no plans for an initial public offering while BigHit was already moving through preliminary listing procedures.
The shares were sold to a special purpose company set up by a private equity fund tied to Bang, and the fund sold them after the company listed in 2020.
The Seoul Metropolitan Police Agency’s financial crime investigation unit opened the case in December 2024 and raided HYBE’s Yongsan headquarters in July of last year.

By Pyo Kyung-min

Published Sep 3, 2026 1:29 pm KST
Updated Sep 3, 2026 2:12 pm KST

HYBE Chairman Bang Si-hyuk appears at the Seoul Metropolitan Police Agency's financial crime investigation unit in Mapo District, Seoul, Sept. 15, 2025, for questioning over alleged violations of the Capital Markets Act's ban on unfair trading. Korea Times file

Seoul police referred Bang Si-hyuk, chairman of HYBE, the entertainment giant behind boy band BTS, to prosecutors Thursday over allegations that he deceived early investors in the agency into selling their stakes before the company went public.

Police did not request an arrest warrant for him.

Bang is accused of unfair trading in violation of the Capital Markets Act. The police alleged that in 2019, when HYBE was still known as BigHit Music, he told existing shareholders that the company had no plans for an initial public offering, prompting them to sell their shares to a special purpose company set up by a private equity fund tied to him, even as BigHit was already moving through preliminary listing procedures.

The fund sold the shares after the company listed in 2020, and police believe Bang collected roughly 30 percent of the proceeds under an undisclosed agreement. Financial authorities have put his improper gains at nearly 200 billion won ($145 million).

The Seoul Metropolitan Police Agency's financial crime investigation unit opened the case in December 2024 and raided HYBE's Yongsan headquarters in July of last year. Prosecutors turned back arrest warrant requests from police in April and May, demanding a supplementary investigation each time and prolonging the probe.

Bang has denied wrongdoing and has maintained that the listing was carried out in compliance with the relevant laws and regulations. Prosecutors are expected to review the police file before deciding whether to indict him.

Bang founded BigHit in 2005 and BTS debuted in 2013. The group's global breakthrough turned the label into the country's largest music company. Bang later stepped back from day-to-day management to chair HYBE's board and remains its single largest shareholder.

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