HYBE Chairman Bang Si-Hyuk’s 157 Billion KRW Shares Seized Amid Fraud Investigation

HYBE Chairman Bang Si-Hyuk is facing legal scrutiny as South Korean authorities investigate alleged fraudulent trading linked to the company’s pre-IPO activities. The Seoul Southern District Court has ordered the seizure of Bang’s HYBE shares valued at approximately 157 billion KRW (around $107 million USD) to prevent their disposal during the ongoing investigation.

The court’s decision, made on December 4 KST, followed a prosecution request aimed at preserving Bang’s assets until a final judgment is reached. Reports state that the move ensures that funds remain available if authorities later decide to confiscate his assets or collect an equivalent amount. A HYBE official, however, told Yonhap News Agency that the asset seizure is a routine precaution

and does not reflect any judgment on the allegations.

Bang is accused of misleading early investors in 2019 by claiming that HYBE had no plans for an IPO, while allegedly transferring company shares to a special purpose company (SPC) linked to a private equity fund involving HYBE executives. The alleged transaction reportedly allowed him to benefit from a 30% return-sharing deal with the fund when HYBE eventually went public—information that was not disclosed during the IPO process.

Under the Capital Markets Act, such actions could carry severe penalties. If found guilty and the gains exceed 5 billion KRW (approximately $3.64 million), Bang could face life imprisonment or a minimum of five years in prison.

The investigation has involved multiple rounds of questioning. Authorities from the Seoul Metropolitan Police Agency conducted five sessions of questioning up to November 18 KST, with Bang first questioned on September 15 and 22, and later on October 15 and 22. Additional rounds were held on November 5 and 18. Prior to the interrogations, police conducted raids on the Korea Exchange and HYBE headquarters on June 30 and July 24 to secure relevant records and evidence.

Bang has expressed his willingness to cooperate with investigators. In a message to HYBE employees, he wrote, “Over the last year, much has been said and written about me in the press. Increasingly, I believe these events are causing confusion and concern for you, as well as our artists, fans, and partners. I will fully and transparently work with investigators and put these allegations to rest.”

He added, “In particular, I feel a deep sense of regret knowing that our members and artists, who should be focused solely on their creative and professional goals, might be suffering because of this situation … I understand how my absence may have contributed to confusion and frustration.”

HYBE, one of South Korea’s largest entertainment companies, manages globally renowned acts including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE.