Bang Si-hyuk, the billionaire founder of HYBE and the man behind BTS’ rise to global superstardom, has been referred to South Korean prosecutors over allegations that he misled investors before the company’s 2020 stock-market debut.
The Seoul Metropolitan Police Agency said Thursday, September 3, that Bang and four others, including HYBE executives and private-equity officials, were referred to the Seoul Southern District Prosecutors’ Office on suspicion of violating the Capital Markets Act. Bang was referred without detention, and police did not seek an arrest warrant this time, TheStar reported.
The investigation centers on events in 2019, when HYBE was still known as Big Hit Entertainment. Police allege that Bang told existing shareholders the company had no immediate plans to go public, despite preparations for an initial public offering already being underway.
According to investigators, some shareholders then sold their stakes to a private-equity fund linked to people close to Bang. Police allege that investors in the fund were aware of the planned IPO.
Big Hit eventually went public on South Korea’s KOSPI market in October 2020. Authorities say the shares acquired through the fund were later sold, generating about 263.1 billion won, or roughly $190 million, in gains. Financial authorities have estimated Bang’s alleged share of the proceeds at nearly 200 billion won, approximately $145 million.
According to The Korea Times, Bang has repeatedly denied wrongdoing, maintaining that the transactions were legal and that he did not mislead investors about HYBE’s plans.
The case has been under investigation since December 2024. Authorities raided HYBE’s Seoul headquarters in July 2025, while Bang was questioned five times. Police also sought arrest warrants for him in April and May, but prosecutors rejected both requests and ordered further investigation.
A court has separately approved a request to preserve assets equivalent to the alleged gains while the case moves forward.
Prosecutors will now review the police investigation and decide whether to indict Bang, request additional investigative work or take another course of action.
Bang founded Big Hit in 2005 and launched BTS in 2013. The group’s unprecedented global success helped transform the company into HYBE, now home to major acts including Seventeen and Le Sserafim.
Although Bang no longer handles HYBE’s day-to-day operations, he remains chairman of its board and its largest individual shareholder, per AP.
The legal developments arrive as BTS makes its highly anticipated return following the members’ mandatory military service in South Korea. With the group back in the global spotlight and embarking on a major world tour, scrutiny surrounding its longtime agency chief is likely to remain intense.