HYBE chairman, Bang Si-hyuk, faces lengthy police questioning. Accused of misleading investors over IPO plans. The investigation continues amid serious fraud allegations.
HYBE Chairman Bang Si-hyuk, a titan of the K-pop industry, found himself at the center of a high-stakes legal storm as he appeared for police questioning on September 15, 2025. The founder of the company behind BTS presented himself at the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit as a suspect in a case alleging violations of the Capital Market Act, specifically fraudulent and unfair trading practices.
Dressed in a formal dark suit, white shirt, and tie, Bang’s somber attire matched the gravity of the situation. Stepping out of his vehicle, he stood before a throng of awaiting journalists, his demeanor serious.
Quoted from NAVER, he briefly addressed the press, offering a bow of his head and a carefully worded apology.
"I apologize for causing concern because of my work. I will faithfully cooperate with the police questioning today," Bang Si-hyuk stated.
However, his willingness to engage ended there. When reporters pressed him with specific questions like, "Is it true that you told me to sell my shares during the IPO process?" and "Is it true that you said there were no plans for an IPO?", he deflected, replying, "I will explain during the investigation," before proceeding inside.
From Recruitment to Raid, The Timeline of a Scandal
Source: Instagram/saccharin7_
The core of the allegations against Bang is intricate and severe. Prior to HYBE's blockbuster IPO in 2020, he is accused of deceiving existing investors and co-founders by falsely claiming the company had no plans to go public. This alleged misdirection pressured them into selling their shares at a low price to a special purpose company (SPC) established by a private equity fund (PEF) linked to HYBE executives. Crucially, evidence suggests HYBE was already deep into its IPO preparatory work, including applying for a designated audit, a mandatory step, at the very time these assurances were being given.
Through this complex scheme, Bang is suspected of having reaped illicit profits amounting to a staggering 190 billion won (approximately $140 million), which included a 30% cut from the PEF's subsequent sale of the amassed shares.
This narrative finds startling support from a previous revelation by Min Hee-jin, the former CEO of ADOR and a former HYBE executive. In a recent court submission, Min disclosed that during her own recruitment negotiations with Bang in January 2019, he made a similar statement to her.
“Chairman Bang, whom I met in person (for a salary contract) in January 2019, said, ‘We have no plans to go public,’ and suggested, ‘Cash is better than stocks (as an incentive). Let’s replace it with a signing bonus'," Min Hee-jin claimed, quoted from Chosun.
This account directly challenges HYBE's official stance that IPO plans only solidified in early 2020 and adds considerable weight to the investors' claims of deliberate deception.
Bang’s police interrogation was a marathon session, underscoring the complexity of the case. He entered the questioning room at 10:00 AM and did not emerge until nearly midnight, at approximately 11:47 PM, marking an intense grilling that lasted nearly 14 hours.
Source: Instagram/armyschile_official
Upon his exit, the once-vocal mogul was completely silent. He ignored all questions from the waiting press pack, quickly entering his car and driving away without a word.
The investigation, which began after authorities received intelligence last year, has been wide-ranging. Police have already executed raids on HYBE’s headquarters and the Korea Exchange to secure listing review materials. Furthermore, financial regulators have filed a formal complaint with the prosecution, and the National Tax Service has launched a parallel tax investigation into the company. The police's focus is now likely on establishing a direct causal link between Bang’s alleged intentional false statements and the financial damage suffered by investors.
For an industry figure of Bang Si-hyuk's stature, this investigation represents a critical juncture. The outcome hinges on whether prosecutors can conclusively prove that his "no IPO" statements were a deliberate fraudulent strategy from which he personally gained enormous financial benefit. The entire business and entertainment worlds are watching closely, awaiting a judgment that could redefine corporate accountability in South Korea's high-flying entertainment sector.
Source: news.nate, NAVER, Chosun, xports news
I hope for a resolution that brings justice and doesn’t hurt the artists I admire.
