HYBE’s founder and chairman, Bang Si-hyuk, appeared before Seoul police today (September 15) for questioning over alleged unfair share trading ahead of the company’s initial public offering.
The Financial Crimes Investigation Division of Seoul Metropolitan Police Agency summoned Bang to answer accusations that he misrepresented HYBE’s IPO plans to manipulate share transactions through a connected private equity fund.
Korea JoongAng Daily reported that Bang arrived at the Mapo District office around 9:55 am in Seoul on Monday. He told reporters: “I apologize for causing concern with this matter. I will fully cooperate with the investigation today.”
When pressed about whether he had instructed investors to sell shares or denied listing plans, Bang declined to elaborate, telling reporters: “I will explain during the investigation,” according to JoongAng.
His appearance before the police came about a month after Bang returned to Seoul from the US to face an investigation over alleged unfair share trading. In a leaked internal email last month, Bang told acknowledged that his extended absence abroad may have contributed to “confusion and frustration” within the company.
Bang told staff: “I will return to Korea to fully and transparently work with investigators and put these allegations to rest.”
“I apologize for causing concern with this matter. I will fully cooperate with the investigation today.”
Bang Si Hyuk, HYBE (to Korean Media)
As MBW previously reported, regulators have referred Bang and three other executives to prosecutors for a probe into alleged “unfair trading” tied to the company’s 2020 IPO.
According to Korea Economic Daily, investigators are examining whether Bang unjustly profited by misleading investors, including venture capital firms, into thinking the IPO would be delayed.
Regulators allege Bang received 30% of the profits, or about 190 billion won (approximately $137 million). This amount is significantly less than the 400 billion won ($288m) that was previously reported.
Bang, who founded Big Hit Entertainment in 2005 before its 2021 rebranding to HYBE, told staff last month: “I feel a deep sense of regret knowing that our members and artists, who should be focused solely on their creative and professional goals, might be suffering because of this situation.”
Separately, HYBE is also facing a tax probe by South Korea’s National Tax Service (NTS) over potential violations related to its IPO. Multiple news outlets out of South Korea, including Korea JoongAng Daily and The Korea Herald reported on July 29 that tax officials visited HYBE’s Seoul headquarters to gather documents and related materials.
Korean media Field News reported in August that the NTS deployed two investigation teams to HYBE, launching a 90-day special tax probe. The investigation team is reportedly conducting a detailed analysis of relevant accounting data.
These developments come as HYBE continues to expand its business globally. Last week, HYBE announced that its Medellín Music Lab incubator in Colombia auditioned over 400 aspiring artists and professionals as part of HYBE’s wider Latin American expansion strategy.
HYBE also continues to bank on its K-pop training experience. The company, via a partnership with Universal Music Group‘s Geffen Records, is currently holding auditions for “The Final Piece” of a new girl group following the success of KATSEYE. HYBE and Geffen recently revealed that three contestants from their 2023 Dream Academy competition, which produced KATSEYE, will join the new girl group.
In Q2 2025, HYBE’s global group revenue climbed 10.2% YoY to 705.6 billion won ($508m). The company’s operating profit jumped 29% YoY to 65.9 billion won ($47m). The double-digit earnings growth was driven in part by solo tours from BTS members and performances by other HYBE artists, which offset the drop in recorded music revenue amid industry-wide declines in physical album sales.
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