HYBE Chairman Bang Si-hyuk faces intensified scrutiny as National Tax Service (NTS) tracks Eastone PE's IPO profits

On August 18, 2025, Field News reported that HYBE chairman Bang Si-hyuk is facing intensified scrutiny. South Korea's National Tax Service (NTS) has expanded its special tax audit into the company. So now, the investigation has widened to include private equity funds connected to HYBE's pre-IPO share sales.

Authorities are obtaining materials related to Eastone Equity Partners (Eastone PE). These have been identified as central to an alleged ₩400 billion side deal involving Bang Si-hyuk.

The allegations originate from 2019, when Bang Si-hyuk reportedly told early investors that there were no immediate plans for HYBE to go public. Around that same time, Eastone PE and other linked special-purpose companies purchased HYBE shares from venture capital firms.

When HYBE went public in October 2020, Eastone PE sold its holdings for a substantial profit and closed its operations the next year. Authorities suspect Bang Si-hyuk received a share of these gains, nearly ₩200 billion, through a secret agreement. This raised suspicions of securities fraud and unfair trading under the Capital Markets Act.

Eastone PE’s connections to current and former HYBE executives have increased scrutiny. The fund, which bought stakes worth more than ₩130 billion from early investors like AlpenRoute Asset Management and LB Investment, was led by figures such as former CIO Kim Joong-dong and IPX division head Lee Seung-seok.

They claim that Eastone PE and other funds offloaded shares immediately after HYBE’s IPO and made huge profits while hurting retail investors who entered the market later. The investigation has already expanded beyond the tax audit. HYBE’s Yongsan headquarters was raided in July.

The Securities and Futures Commission filed a criminal complaint against Bang. The Financial Supervisory Service’s special judicial police are also investigating the case. This has increased the pressure on both Bang Si-hyuk and HYBE.

Background on the case, Bang Si-hyuk’s current activities, & more

The probe into Eastone PE is part of a broader legal storm confronting Bang Si-hyuk. He is the founder of Big Hit Music and the mastermind behind HYBE’s global success with BTS and other artists. Regulators claim that he misled investors prior to the IPO and arranged share transfers through private equity partners.

They also allege that he benefited from profit-sharing arrangements that could have violated securities laws. Police and financial regulators are now working together with the tax authority.

HYBE Chairman Bang PD (Images via Instagram/@hitmanb72)

Despite this, the K-pop mogul remains active in Korea’s business scene. He was recently named among the top corporate figures invited to attend President Lee Jae-myung’s national appointment ceremony at the Blue House. The event included top executives from Samsung, SK, Hyundai, and other conglomerates.

The HYBE chairman returned to South Korea earlier this month after a stay in Los Angeles. He had reportedly been overseeing BTS’s upcoming 2026 album production. His legal troubles have temporarily slowed his direct involvement in the project, though the group is said to be continuing work on music and preparations for their next tour.

About the author

Mantasha is a pop culture writer at Sportskeeda who covers K-pop and K-drama. She has recently completed her Masters in English and has a rich 3-year writing experience where she crafted engaging content for top companies such as Unacademy, Apollo Hospitals, Adani Airports, and the Economic Times. Her experience has helped her create a strong foundation that complements her passion for creating the best content related to K-pop, K-dramas and Korean movies.

Mantasha's interest in pop culture took root when her cousin introduced her to classic Hollywood and Bollywood tunes and the rest, as they say, is history. Mantasha’s connection with K-pop supergroup BTS is a special one as their song lyrics, hard work, and dedication resonate with her like no other group does.

Maintaining accuracy, relevance, and ethics in her reporting is extremely essential for Mantasha. She prioritizes thorough research, delving deep beyond just superficial sources, to ensure comprehensive and trustworthy information.

When not writing, Mantasha enjoys journaling and doodling, watching K-dramas and listening to songs.

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Edited by Shreya Das