South Korean police refer HYBE founder Bang Si-hyuk to prosecutors as part of a long-running investigation into allegations that he misled investors before the company’s 2020 listing. Seoul Metropolitan Police Agency says it has shared its findings with prosecutors. Police do not seek an arrest warrant, according to the reports.
The allegations focus on Bang’s dealings with early shareholders when HYBE was then known as BigHit Music. Police say he told existing shareholders that the company had no plan to go public, prompting them to sell their stakes to a special purpose vehicle linked to a private equity fund connected to him. Police say BigHit was already moving through preliminary listing procedures. After the company later lists in 2020, police believe proceeds were distributed to Bang under an undisclosed arrangement, with authorities estimating improper gains at nearly 200 billion won ($145 million).
Outlets describe the referral as the next procedural step following a police investigation launched in late 2024, with reports also noting police have raided HYBE’s offices during the probe. Both accounts frame the matter as potential violations tied to unfair trading under South Korea’s Capital Markets Act, rather than a confirmed wrongdoing by Bang.
