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On July 9, 2025, K-media Hankyung Korea Market reported that Bang Si-hyuk, the founder and chairman of HYBE, might encounter official charges regarding suspected breaches of South Korea’s Capital Markets legislation.
According to industry sources, the Capital Market Investigation Deliberation Committee, part of the Securities and Futures Commission (SFC) under the Financial Services Commission, has completed a recent review and submitted a formal opinion recommending action against Bang.
The statutory body plans to examine the issue on July 16.
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Reversal of the committee’s recommendation is considered unlikely, according to officials familiar with the process. At the center of the case is a contract signed in 2020 between Bang and a private equity fund (PEF) established by an associate.
The agreement stated that if the BTS' agency (then operating as Big Hit Entertainment) went public within a certain timeframe, Bang would receive 30% of the capital gains generated by the PEF from HYBE share sales.
If the IPO did not occur, the 52-year-old would repurchase the shares at their original purchase price.
HYBE went public during the agreed period, and Bang reportedly received approximately 400 billion won as a result. Investigators believe that these PEFs acquired shares from early stakeholders, including institutional investors and venture capital firms.
Authorities allege that at the time of these transactions, Bang informed investors that a public offering was not being considered, even as preparations for listing were underway.
These included steps such as applying for a designated audit, typically required before going public.
Regulators also noted that the profit-sharing agreement between Bang and the PEFs was not disclosed during the Korea Exchange’s IPO review or in the securities registration filed with the Financial Supervisory Service.
Concerns have since been raised that early investors, unaware of the arrangement, may have incurred financial losses as a result.
Financial authorities are examining whether the use of private equity funds was a means to circumvent regulatory disclosure requirements. The outcome of the SFC’s July 16 meeting will determine whether Bang’s case proceeds to formal prosecution.
HYBE stock dips amid legal investigation into chairman Bang Si-hyuk
On July 9, HYBE’s shares dropped early after reports emerged that financial regulators are preparing to refer Chairman Bang Si-hyuk to prosecutors over suspected breaches of the Capital Markets Act. At 9:09 a.m. KST, HYBE shares traded at 275,000 won, down 11,000 won ( which is 3.91%) from the prior session.
The decline extended to as much as 4.8% during intraday trading. The stock movement appears to be linked to developments surrounding an ongoing investigation.
In response, HYBE released a formal statement outlining its stance. The company stated it is cooperating fully with both financial oversight bodies and investigative authorities.
The company noted that it has submitted detailed records and materials to assist in the inquiry. The agency pledged to clarify the facts, regardless of how long the process takes.
