HYBE Founder Bang Si-hyuk Accused of Secretly Misleading Investors Before HYBE's $193M IPO Windfall

South Korean police have referred HYBE founder and chairman Bang Si-hyuk to prosecutors over suspected fraudulent trading linked to the company's 2020 IPO, prompting mixed reactions from BTS fans over whether the K-pop executive is facing legitimate accountability or disproportionate scrutiny.

According to reports, police allege Bang and associates misled shareholders in 2019 about plans for a public listing before the shareholders sold their stakes to a private-equity fund which Bang allegedly had a profit-sharing agreement.

However, Bang denies wrongdoing, and prosecutors will now decide whether to indict him.

Bang Si-hyuk Faces Fraud Allegations Over HYBE IPO

The allegations centre on events in 2019, when HYBE was still known as Big Hit Entertainment. Police allege that existing shareholders were told there were no plans for an initial public offering, which encouraged them to sell their shares to a special-purpose vehicle connected to a private-equity fund.

Police say that, around the same period, investors in the fund were given indications that an IPO was planned or likely. After Big Hit's 2020 stock-market listing, the fund allegedly sold the shares at a substantial profit.

Investigators say Bang received a significant portion of the proceeds through a side agreement entitling him to about 30 per cent of the fund's profits from post-IPO share sales. Police have calculated the combined alleged illicit gains of Bang and four other suspects at approximately 263.1 billion won, or around $193 million.

A South Korean court reportedly froze assets worth 263.1 billion won. The order is not a finding that Bang or any of the other suspects committed an offence.

Four other suspects, including HYBE-related executives and private-equity officials, have also been referred to prosecutors.

Bang Denies Wrongdoing as Probe Moves to Prosecutors

Bang was referred without detention to the Seoul Southern District Prosecutors' Office. Prosecutors had previously rejected police requests for an arrest warrant on two occasions, citing insufficient grounds for detention and requesting further investigation.

According to reports, Bang and his legal team have denied wrongdoing and said they have co-operated with investigators, providing evidence and factual explanations. HYBE has also maintained that its listing complied with relevant rules.

The referral does not mean Bang has been found guilty. Prosecutors must now review the investigation and determine whether formal charges should be brought.

BTS Fans Split Over Bang Si-hyuk Investigation

The legal developments have drawn differing responses from some members of the ARMY fandom. Some fans argue that the repeated rejection of requests for arrest warrants shows the case remains far from straightforward.

One commenter wrote, 'This year 2 arrest warrants were rejected because of not enough evidence.'

Another said police had spent years investigating without producing sufficient evidence, adding, 'Couldn't even muster an arrest because their evidence is weak asf even after 2 years of investigating.' However, the decisions concerned whether there were sufficient grounds to detain Bang, rather than whether the allegations themselves were substantiated.

Others accused the authorities and media of unfairly targeting Bang. Some posts characterised the investigation as a 'witch hunt' or 'pure harassment', although they provided no evidence that the authorities had acted improperly.

Other fans took the opposite position, arguing that Bang's connection to BTS should not shield him from scrutiny over alleged financial misconduct. One commenter criticised fans of HYBE groups for defending Bang, writing, 'Fandoms of Hybe groups working really hard to save their favourite CEO.'

The online discussion highlights differing views among some fans.

Prosecutors Will Decide Whether Bang Si-hyuk Is Indicted

The investigation remains unresolved, with no final judicial determination against Bang. Police say their case is based on alleged discrepancies in statements to shareholders and fund investors, the structure of the transactions, the timing of IPO preparations and the subsequent movement of profits.

For fans, however, the debate has extended beyond the fraud allegations themselves. The next major step will rest with prosecutors, who must decide whether the evidence supports an indictment.