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May 29, 2025, brought a wave of shocking news for HYBE. The label, which also houses BTS, is currently under scrutiny following Chairman Bang Si-hyuk's alleged fraudulent trading worth $290 million. The label's shares dropped to 266,000 KRW, showing a 13,000 KRW or 4.66% drop from the previous trading day, reported Chosun Biz.
Bang Si-hyuk, also known as Hitman Bang, has come under investigation for alleged fraudulent trading by the Financial Supervisory Service. It is alleged that he was involved in misleading the shareholders about the label's IPO plans before selling the company's equity.
What are the fraud allegations against HYBE's Chairman Bang Si-hyuk?
Chairman Bang reportedly signed up to receive 30% of the profits from the equity sales in a private equity fund established by an acquaintance of the label before HYBE's IPO in 2020.
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As per The Korea Herald, Chairman Bang is reported to have earned 400 billion won (approximately $289.7 million) via undisclosed shareholder agreements with private equity funds.
The FSS has reportedly secured evidence that during the label's pre-IPO phase, Chairman Bang privately informed institutional investors that a public listing was not likely, despite eventually moving ahead with the label's IPO listing in 2020. This profit-sharing deal was not disclosed in the official tax filing documents of the label, likely constituting a violation of Korea's capital market law.
As of this writing, neither the FSS nor HYBE has confirmed the existence of these transactions involving Chairman Bang. But neither has denied it as well. The Korea Herald reported that the FSS is reportedly considering referring the case to prosecutors, and a separate police investigation is underway.
Will Bang Si-hyuk's scandal affect BTS's upcoming reunion in 2025?
BTS's much-anticipated reunion is expected to be less than a month away, even though an official date for the group's comeback has not been announced.
After members RM, V, Jimin, and Jungkook's discharge on June 10 and 11 and member Suga's discharge on June 21, all seven members will be finally united for the first time in three years since Jin's enlistment in 2022.
Since 2022, the members have focused on solo activities with solo album releases, solo tours, appearances on variety shows, documentary releases, and more.
The Korea Herald quoted an entertainment industry executive who asserted that BTS can very well make a comeback without Bang Si-hyuk's involvement. The executive said,
“The issue centers on Bang Si-hyuk’s personal gains and doesn’t directly involve BTS. Hybe operates under a multi-label system, and BTS is more than capable of making a comeback independently of Bang.”
The official continued,
“Each member has already solidified their global presence through solo careers. While Hybe’s reputation might take a hit, I don’t see this delaying BTS’ return or affecting their promotional activities. Sure, this could leave a blemish on the company’s record. But fans won’t stay quiet - even if Bang ends up being ousted, they won’t let it derail BTS’ activities.”
Bang Si-hyuk has been instrumental in BTS's success. He set up BigHit Music, the label that houses BTS and is part of HYBE. He was also an active contributor to BTS's discography, having composed and produced several hit tracks for the group under the moniker Hitman Bang.
