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On Wednesday, July 16, the Financial Services Commission shared updates on HYBE chairman Bang Si-hyuk's ongoing investigations for suspicions of unfair trading. It was revealed by the Securities and Futures Commission the same day that during their 14th meeting, Bang Si-hyuk and other former HYBE executives were reported to the prosecution due to their violation of the Capital Market Law.
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For those who are unaware, in June 2025, the chairman was first revealed to have been under investigation for possible unfair trading practices. This was tied back to BigHit Entertainment's rebrand into HYBE Labels in 2020. In 2019, before the IPO, the chairman misled the investors of HYBE Labels by expressing that they had no intentions towards a public listing, as reported by Maeil Business Newspaper.
However, Bang Si-hyuk allegedly entered into agreements with private equity funds through his acquaintances and gained a profit of 400 billion KRW after HYBE went public. Since this was disclosed in the official filings of HYBE Labels, the agreement fell under the violation of South Korea's Capital Market Law.
While these allegations have not yet been proven to be true, according to the South Korean Law System, any illegal profits or avoidance of losses over 5 billion KRW would result facing a jail term of either a minimum of five years or lifetime imprisonment.
HYBE responds as the Financial Services Commission holds Bang Si-hyuk and other executives under unfair trading charges
HYBE or HYBE Labels is a South Korean multinational entertainment company that was established by Bang Si-hyuk back in 2005. The agency was initially known as Big Hit Entertainment until its rebranding in 2020. HYBE also holds several subsidiaries such as KOZ Entertainment, Source Music, ADOR, BigHit Music, and more.
Bang Si-hyuk, also known as Hitman Bang, is a South Korean songwriter, composer, and producer who is known for several music creations in the K-pop industry. He is also credited with bringing together BTS, one of the most well-known K-pop groups.
On July 16, following the news report and update on Bang Si-hyuk's ongoing investigations for alleged unfair trading practices, HYBE Labels released a statement conveying their thoughts on the same. They expressed that despite the hurdles they faced with the news, they've chosen to respect the authorities' decision.
The statement, as translated from Korean, read:
"It is regrettable that the largest shareholder's active explanation that he appeared for the Financial Supervisory Service investigation and that he had not sought private profits on the premise of the listing was not accepted."
The statement continued:
"We respect the decision of the financial authorities and will do our best to more actively clarify the related suspicions in the upcoming investigation so that we can restore the trust of the market and stakeholders."
Following the revelation of the ongoing investigations, around June 9, HYBE's stock prices also faced a huge drop. The initial decrease of 3.91% value of their shares soon extended to 4.8%.
No response or statement from the chairman with respect to the ongoing investigations and accusations has been released.
