The Seoul Metropolitan Police Agency has forwarded a case against Bang Si-hyuk, founder and chairman of Hybe, the agency behind K-pop group BTS, to prosecutors over alleged fraud against investors ahead of the company's stock market listing.
Police recommended that Bang be prosecuted for allegedly fraudulent transactions in violation of South Korea's Capital Markets Act. The case was sent to the Seoul Southern District Prosecutors' Office, and Bang was not detained.
According to the investigation, between August and October 2019 Bang told Hybe shareholders that the company had no immediate plans to go public. Police said this led several investors to sell their stakes to a private equity fund allegedly linked to Bang.
While those transactions were taking place, Hybe was reportedly moving forward with preparations for an initial public offering. Between October and November of that year, the fund allegedly drew in new investors by telling them the listing was expected to go ahead.
How the alleged scheme worked
Hybe began trading on the Korea Exchange in October 2020. After the listing, the fund sold its shares, and Bang allegedly received 30% of the profits under a prior private agreement. That share is said to have earned him around 200 billion won, equivalent to about $147 million.
Police estimate the total allegedly illicit profits generated by the operation at 263.1 billion won, roughly $194 million. A court has ordered those assets preserved pending possible confiscation, according to the South Korean news agency Yonhap.
Four other suspects, including Hybe executives and representatives of the private equity fund, were also referred to prosecutors. Authorities described the case as an allegedly organized and planned financial operation.
Bang denies wrongdoing
Bang's defense team denied that he committed any irregularities and said he has responded to the accusations with objective evidence and data. His lawyers said they expect the allegations to be clarified during the judicial process.
The referral of the case file does not amount to a formal indictment or a finding of guilt. It will be up to prosecutors to review the evidence and decide whether to file charges, request further investigation, or send the case back to police for additional inquiry.
Prosecutors had already rejected two police requests to detain Bang, filed in April and May, judging the grounds insufficient to justify his arrest. The investigation began in December 2024 and has lasted 21 months.
Who is Bang Si-hyuk
Bang Si-hyuk is one of the most influential figures in the South Korean music industry. He founded the company that later became Hybe and led the international expansion of BTS, one of the most successful K-pop groups in the world.
