Bang Si-hyuk, the billionaire founder and chairman of HYBE, the entertainment company behind BTS, has been referred to prosecutors in South Korea over allegations of unfair trading connected to the company’s 2020 stock market listing.
On September 3, 2026, Seoul police referred Bang and four other individuals to the Seoul Southern District Prosecutors’ Office. Investigators allege that early investors were misled about the company’s plans to go public, potentially allowing people connected to a private equity fund to profit from shares sold before the initial public offering (IPO).
Bang denies wrongdoing, and HYBE has maintained that the company’s listing complied with the law. Prosecutors will review the case and decide whether to bring charges, request further investigation or take other action.
The case has attracted international attention because HYBE is one of the most influential companies in the global K-pop industry, with BTS at the center of its international success.
What Is Bang Si-hyuk Accused Of?
The allegations concern events in 2019, when HYBE was still known as Big Hit Entertainment.
According to police, some existing shareholders were told that the company had no immediate plans for an IPO, even though preparations for a public listing were reportedly underway. Investigators allege that these shareholders were encouraged to sell their stakes to a special-purpose company connected to a private equity fund.
Police further allege that investors in the fund were told that an IPO was being planned. Big Hit Entertainment subsequently went public in October 2020.
After the listing, the fund sold shares and generated substantial proceeds. Investigators suspect that an undisclosed agreement entitled Bang to approximately 30 percent of the relevant profits.
Police have estimated the total alleged improper gains associated with the case at 263.1 billion won, approximately US$194 million at the exchange rate cited in South Korean reports. This figure refers to the alleged gains in the broader case, not necessarily the amount Bang personally received.
These allegations have not been established as facts by a final court judgment.
Why Did the Investigation Take So Long?
Police began investigating the case in December 2024. The investigation included searches of relevant offices and questioning of Bang.
In April and May 2026, police sought arrest warrants for Bang, but prosecutors rejected the requests, citing insufficient grounds and shortcomings in the investigation.
Police continued investigating and ultimately referred Bang and four other individuals to prosecutors without detention in September 2026.
The decision to refer the case means that police believe there is sufficient basis to submit their findings for prosecutorial review. It does not mean Bang has been convicted, or that prosecutors have necessarily decided to indict him.
The next stage depends on the prosecutors’ assessment of the evidence and the legal issues involved.
Bang Si-hyuk and HYBE’s Rise
Bang founded Big Hit Entertainment in 2005. The company later became the home of BTS, whose international success transformed the business into a major player in the global music industry.
Big Hit Entertainment went public in October 2020 and subsequently became part of the broader HYBE corporate structure. The company expanded beyond artist management into multiple entertainment labels, fan platforms and other businesses.
Bang’s role in building the company has made him one of the most prominent figures in K-pop. The allegations therefore raise questions not only about an individual executive but also about corporate governance and investor protection in South Korea’s entertainment industry.
For international investors, the case illustrates how financial regulations apply to entertainment companies as they grow into large publicly traded businesses.
What Has Bang Si-hyuk Said?
Bang has denied the allegations. His legal representatives have said that he has responded to the investigation with evidence and factual explanations and expect the allegations to be resolved through the legal process.
HYBE has also said that it cooperated with the authorities and maintained that its IPO was conducted in accordance with applicable laws and regulations.
The allegations remain disputed. The police account represents investigators’ conclusions, while Bang and HYBE reject claims of wrongdoing.
What Happens Next?
The Seoul Southern District Prosecutors’ Office must review the case file before deciding how to proceed. Possible outcomes include an indictment, a request for further investigation or a decision not to bring charges.
The referral is an important procedural development, but it is not the final stage of the case. As of October 28, 2026, the reports cited here do not establish a final prosecutorial or judicial determination of Bang’s alleged conduct.
The case also highlights a wider issue for the global K-pop business: as entertainment companies become major corporations with international investors, their executives face scrutiny over financial transparency and corporate governance.
For now, the allegations remain unresolved. The next major development will be the prosecutors’ decision on whether the evidence supports formal charges.
Source: Yonhap News Agency — https://en.yna.co.kr/view/AEN20260903005600315
Additional Sources: Associated Press — https://apnews.com/article/3d87dae30a2257da750f6fdff94f6217 ; The Korea Times — https://www.koreatimes.co.kr/southkorea/law-crime/20260903/man-behind-bts-referred-to-prosecution-over-allegedly-lying-to-shareholders
Category: Business
Published: October 28, 2026