On August 22, 2025, News1 reported that police are reportedly preparing to summon HYBE chairman Bang Si-hyuk for questioning on suspicions of fraudulent and unfair transactions tied to the company’s initial public offering (IPO). Industry sources revealed that the summons is expected within the month.The investigation has already led to raids on HYBE’s Yongsan headquarters and a wider tax probe. In 2019, Si-hyuk allegedly told investors there were no plans to go public, while secretly arranging to sell shares to a private equity fund linked to an associate. When HYBE went public in October 2020, that fund sold its shares for big profits.Under a pre-arranged agreement, Bang Si-hyuk allegedly secured 30 percent of those profits. He has rejected the allegations and insisted that the conditions of profit-sharing were proposed by the investors themselves.Investigators are now scrutinizing transactions involving Easton Equity Partners and related entities. It had played a central role in buying pre-IPO stakes and later shutting down soon after HYBE’s stock market debut.Reports suggest that nearly 200 billion KRW from these sales may have been funneled back to Bang Si-hyuk through undisclosed agreements.The case has since extended to include both financial regulators as well as the National Tax Service. It launched a special audit of multiple private equity funds linked to HYBE’s listing.All we know about Bang Si-hyuk’s case and HYBE’s IPO backgroundNews1 reported that the controversy traces back to HYBE’s days as Big Hit Entertainment. During the initial days, the company relied almost entirely on BTS’s success. Despite their rise with global hits such as DNA, Spring Day, and later Boy With Luv and Dynamite, early investors feared overreliance on a single act and the risk posed by mandatory military service.Many opted to sell their shares before the IPO. Bang Si-hyuk allegedly arranged buyers through firms. Some of them include Easton Equity Partners, Stick Investment, and New Main Equity.Sniper22 @Snper22LINKThe media is starting to report the facts about Bang Si-hyuk's situation. This article can be summed up n these two quotes from an official: "No one knew BTS would do this well" and "early investors sold their shares in case the IPO failed." https://t.co/T1FRAUuWhlThese transactions included protective clauses. It was said that if the music label failed to go public within the time limit, Bang Si-hyuk would buy back the shares at higher prices. However, if the IPO succeeded, he was entitled to 30 percent of the profits.This structure allowed early investors to exit with substantial gains. Some reported returns of up to 20 times their initial investments, while raising questions about the fairness of insider arrangements.HYBE eventually shifted course and pursued a stock market listing in October 2020. Shares were opened at 135,000 KRW and doubled on the first day. They later peaked at 421,500 KRW in 2021. The company later changed its branding to HYBE in March of that year. It established itself as a major global entertainment group.BTS's Management HYBE Acquires Scooter Braun's Ithaca Holdings - Source: GettyThe ongoing investigation will determine whether Bang Si-hyuk’s agreements violated Article 178 of the Capital Market Act. It prohibits unfair trading practices.If proven, the charges could carry severe penalties. HYBE has stated that it will cooperate fully with authorities.Meanwhile, Bang continues his public appearances. He even attended state business events earlier this month despite the legal scrutiny.