Bang Si-hyuk’s private equity fund earnings from HYBE's listing are reported to have exceeded 1 trillion KRW amidst IPO fraud allegations. Recently, Bang PD, or Bang Si-hyuk, Chairman of HYBE LABELS, was accused of inducing early investors to put their funds in a Private Equity Fund (PEF) around 2019.He allegedly lied about the listing of HYBE being delayed and used the opportunity to collect fraudulent funds through a PE called Easton Equity. In 2020, the entertainment giant was officially established and became a home to several K-pop powerhouses: BTS, TXT, SEVENTEEN, and more. The chairman used the private equity funds to trade the mentioned stocks after the company was listed in October 2020 and made a profit.Additionally, the allegations further spread that Easton Equity was set up by his associates who worked at the company, including Kim Joong-dong, Chief Investment Officer (CIO), and Lee Seung-seok, the Brand Synergy Headquarters Director.According to Live Mint, Bang Si-hyuk allegedly collected over 400 billion KRW through such fraudulent trade practices. However, with Money Today's report on July 20, 2025, it is said that he has made over 1 trillion KRW in funds through the listing of HYBE and Easton Equity PE.HYBE chairman Bang Si-hyuk’s case forwarded to prosecution, involving National Pension Service's funds, and moreOn July 16, 2025, HYBE LABELS chairman Bang Si-hyuk, along with the former executives involved in the alleged unfair trade cases, was reported to the prosecution by the Financial Services Commission's Securities and Futures Commission. They were reported on the basis of the violation of the Capital Market and Financial Investment Business Act or the Capital Market Act.Notably, reporting to the prosecution is the highest-level penalty the Financial Service Commission can charge on a person involved in violations of the Capital Market Act. The same day, HYBE responded to the situation by stating that they regret that the explanation of the largest shareholders’ stock activity was not accepted by the commission.However, the company will do their utmost to clarify any further speculation. They also stated that they would do their best to restore the public’s trust in the company.However, on July 20, 2025, Money Today reported that the National Pension Service’s funds were indirectly linked to this particular unfair trade, which resulted in alleged wastage of public funds. The National Pension Service is known for the management of the people's retirement reserves, and they were a part of the pre-IPO investment structure of the company.Ahead of the official listing of the entertainment conglomerate, the pension reserves were sold to the private equity firm recommended by Bang Si-hyuk. It is reported that due to this illegal activity, the whole nation faced the aftermath of misusing pension funds. Besides Bang PD's alleged moral hazard in question, this case further raised public accountability concerns against the chairman.HYBE has maintained the stance that there would be no legal concerns. However, industry experts suggest that this incident may drive the public and investors away from the company due to a lack of trust.Furthermore, following the establishment of the current Government of the Republic of Korea, penalties for stock manipulation are reportedly becoming more severe. Due to this, the outcome of the prosecution's investigation into Bang PD's alleged stock manipulation is gaining attention from the South Korean public.