BTS members received far less in HYBE’s IPO compared to chairman Bang Si Hyuk, who is now under investigation for alleged $290 million stock fraud.
Global K-pop sensation BTS and their agency HYBE are at the center of a growing controversy. Fans are angry after learning how little the group earned from HYBE’s 2020 stock market debut while chairman Bang Si Hyuk reportedly made $290 million. South Korea’s financial watchdog is now investigating Bang for possible fraud.
Before HYBE went public, Bang gave each BTS member around 68,000 shares. All seven members together got 478,695 shares, worth about $46 million at the time. Each member’s share was valued at roughly $6.7 million. In 2021, three members—Jin, J-Hope, and RM—sold some shares, earning between $1.4 million and $3.8 million each.
By 2023, BTS members became private shareholders. Their remaining shares could now be worth around $11 million per member. While this sounds like a lot, it’s tiny compared to Bang’s earnings. Reports say he made $290 million from HYBE’s IPO through a private deal not disclosed to investors.
“BTS is the reason HYBE became so successful. It’s unfair they got only crumbs while insiders made billions,” said a fan online. Many fans are calling out Bang’s image as the “father of BTS,” saying the group deserved more.
The $290 Million Fraud Case Against Bang Si Hyuk
South Korea’s Financial Supervisory Service (FSS) is investigating Bang for possible illegal stock trading. In 2019, he allegedly told early investors that HYBE had no plans to go public. Believing this, many sold their shares at low prices.
Months later, HYBE filed for an IPO. The sold shares went to a private equity fund linked to Bang. He had a secret deal giving him 30% of the fund’s profits. After HYBE went public in October 2020, Bang reportedly earned $290 million from this deal.
Authorities say hiding such deals breaks South Korea’s Capital Markets Act. If found guilty, Bang could face at least five years in prison. Since the fraud amount exceeds $3.7 million, he might even get life in prison.
“This wasn’t a small mistake. Investors were misled, and the profits were hidden,” said a financial expert. HYBE denies wrongdoing, saying all deals were legal.
Why Fans Are Angry About BTS’ Small Share
BTS is HYBE’s biggest moneymaker. The group brought in billions through music, tours, and merchandise. Yet, their IPO rewards were minimal compared to Bang and other insiders.
Some equity fund managers made $76 million to $152 million from HYBE’s IPO. Fans argue BTS, who built the company, deserved a fairer share.
“They worked hard for years. Why did others profit more than them?” asked a fan on social media. The anger has grown as Bang’s legal troubles unfold.
What Happens Next?
The FSS is preparing to send the case to prosecutors. Police are also investigating. If charged, Bang could face a long trial. Meanwhile, HYBE’s stock dropped nearly 5% as news of the scandal spread.
BTS is set to reunite soon after military service. Fans hope the scandal won’t affect the group’s comeback. Industry experts say the case is about Bang, not BTS, and shouldn’t delay new music.
“BTS is bigger than one person. Their fans will support them no matter what,” said an entertainment insider.
What Is an IPO?
An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time. It helps the company raise money and lets people invest in it. HYBE’s 2020 IPO made it a publicly traded company, but the current scandal has raised questions about fairness.
Key Points:
- BTS members got $6.7 million each in HYBE’s IPO.
- Bang Si Hyuk made $290 million from a secret deal.
- South Korean authorities are investigating possible fraud.
- If guilty, Bang could face life in prison.
- Fans demand fairer profit sharing for BTS.
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Credits: Asianews Network
