HYBE's Bang Si-hyuk reportedly under investigation for fraud and unfair trade days before BTS reunion

Fans of the biggest K-pop band, BTS, are anticipating the long-awaited reunion of all seven members of the group. However, the word on the street is that their agency, HYBE, is facing serious scrutiny, as founder Bang Si-hyuk is allegedly under investigation for fraud and unfair trade.

Just a few days before BTS’ reunion—V and RM are going to be discharged on June 10, JK and Jimin the next day, and Suga on June 21—South Korea’s Financial watchdog, the Financial Supervisory Service (FSS), is allegedly investigating Bang Si-hyuk for fraudulent trading during HYBE’s pre-IPO phase. BTS Army is worried that this intense scrutiny will affect the group’s comeback.

More details on BTS’ agency founder Bang Si-hyuk's alleged investigation

As reported by multiple news sources, Bang Si-hyuk, founder and chairman of BTS’ agency HYBE, is under intense investigation by the FSS. According to local reports, the financial regulatory body is looking into suspicious deals that Bang Si-hyuk made with investors and private equity funds before HYBE's IPO in 2020.

According to the Korea Economic Daily, the FSS has secured evidence against Bang proving the above speculations. According to the financial news site, sources reveal that the Financial Supervisory Service found evidence detailing Bang’s shady involvement with private equity firms before and after HYBE’s IPO, when the agency was still under the name of Big Hit Entertainment.

The evidence suggests that Bang allegedly shared with HYBE’s existing shareholders that the company had no plans to go public in 2019, leading to a divestment of their stakes. However, the 52-year-old business executive began to process the company’s public listing after he allegedly signed a confidential shareholders’ agreement with some local PEFs that the Korea Economic Daily named, including Estone Equity Partners, STIC Investments Inc., and New Main Equity.

Read more: "It's for the girls that get it": KATSEYE's Lara responds to mixed reactions to "Gnarly"

This shady deal reportedly enabled Bang to earn 400 billion won (approximately $289.3 million) after the company’s future listing, which caused several investors to suffer losses.

Although neither HYBE nor the FSS has confirmed the investigation claims, they didn't refute them either. According to the Korea Economic Daily, FSS plans to refer the case to prosecutors immediately after concluding the ongoing investigation.

This new development comes after HYBE’s Seoul headquarters were raided on Thursday, May 29, by South Korean authorities. According to local reports, the offices were raided as part of an investigation into a former executive who was allegedly into insider trading.

“We cooperated with the authorities in response to their request for information concerning the conduct of a former employee,” said a HYBE representative, as reported by MBW.

Read more: “Global IT Girl”: Fans react as BLACKPINK’s Jennie becomes muse for Jean Paul Gaultier’s Pre-collection Fall 2025 campaign

In positive news, HYBE has confirmed the opening of a new branch office in China, expanding its reach into the international music market.

×

Was this article helpful?

Thank You for feedback