On August 6, 2025, Bang Si-hyuk, Chairman of HYBE Corporation—one of South Korea’s largest entertainment giants—released his first official statement addressing allegations of fraudulent stock trading related to HYBE’s initial public offering (IPO). The last few months have seen mounting scrutiny as financial regulators and law enforcement intensify investigations into claims that Bang concealed IPO plans from existing investors while benefiting from undisclosed share sale profits. In a heartfelt email to HYBE’s internal staff, Bang apologized sincerely for the distress caused and took responsibility as the company’s founder and leader.
Bang acknowledged that despite his extended stays abroad due to artists’ comebacks and business expansion, he intends to return swiftly to Korea to face the authorities’ investigation head-on. He emphasized his commitment to cooperating thoroughly with both financial supervisory agencies and prosecutors. Bang reaffirmed confidence that truth will be revealed through the investigation and expressed his humility in awaiting official judgment. The statement also reflected on his personal growth, admitting past oversights and promising to reflect deeply on areas where he may have fallen short during HYBE’s rapid rise. He sought to assure all HYBE members and affiliated artists that he would strive to prevent his personal issues from hindering their creativity and career activities.
The allegations center on claims that prior to the 2020 IPO, Bang Si-hyuk entered into a secret contract with a private equity fund set up by an acquaintance, funneling 30% of proceeds from undisclosed share sales amounting to approximately 400 billion KRW (~$300 million). Investors including institutional entities and venture capitalists were reportedly misled as Bang publicly asserted no IPO plans while quietly preparing for the listing. South Korean financial authorities have since conducted extensive investigations, with the Financial Supervisory Service conducting multiple raids at HYBE’s headquarters. The Seoul Southern District Prosecutors’ Office, alongside financial crime units and the National Tax Service, are investigating suspected fraudulent transactions and possible tax violations.
This high-profile probe comes amid HYBE’s role as a pivotal K-pop entertainment powerhouse, managing mega acts like BTS (Bangtan Sonyeondan) and newer groups including NewJeans and Enhypen. HYBE’s global success under Bang’s leadership has shaped the international K-pop landscape, making the allegations deeply impactful for the industry. Fans and industry insiders alike watch closely as Bang vows to maintain his focus on the company’s future and to shield HYBE’s talented artists from fallout. His pledge to uphold artistic and business integrity reflects the importance of HYBE’s mission to evolve the music industry while addressing serious legal challenges head-on.
