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Police Refer HYBE Chairman Bang Si-hyuk to Prosecution Over Alleged Fraud
Consumer Services · Movies/Entertainment · yonhap_finance · 2026-09-03
Police have referred HYBE Chairman Bang Si-hyuk to the prosecution for allegedly misleading shareholders about IPO plans to acquire their stakes.
What Happened
Case Overview: The Seoul Metropolitan Police Agency has referred HYBE Chairman Bang Si-hyuk to the prosecution on charges of fraudulent trading under the Capital Markets Act. Bang is accused of misleading early investors in 2019 by claiming there were no plans for an IPO, thereby inducing them to sell their shares.
Alleged Gains: Investigators estimate that Bang and his associates gained approximately 263.1 billion won through these actions. The court has already granted a freezing order on these assets to ensure the potential recovery of criminal proceeds.
Investigation Timeline: The police investigation began in December 2022, involving multiple raids on HYBE's headquarters and the Korea Exchange. In addition to Chairman Bang, four other individuals, including former and current executives and private equity partners, were referred to the prosecution.
HYBE's Response: HYBE has categorically denied all allegations. Previous attempts by the police to secure arrest warrants for Bang were rejected by the prosecution, and the case now moves to the prosecution for further review and potential indictment.