HYBE Chairman Bang Si Hyuk underwent 14 hours of police questioning on September 15, 2025, over allegations of stock fraud linked to HYBE’s initial public offering in 2020. The investigation focuses on claims that Bang misled early investors and company executives about the company’s plans to go public. These actions allegedly allowed him and his associates to profit massively from the IPO. The case has drawn significant public attention and could have serious implications for Bang and HYBE.
Police Investigation and Allegations
Bang Si Hyuk appeared at the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit for questioning. He arrived in a navy suit and briefly spoke to reporters.
“I apologize for causing concern with this matter. I will fully cooperate with the investigation today.”
Police suspect that Bang deceived venture capitalists and other early investors in 2019 by telling them HYBE had no plans to go public. This allegedly prompted them to sell their shares at lower prices to a special-purpose company backed by HYBE executives. Investigators believe Bang secured illicit gains of about 190 billion won ($137 million), including 30% of the profits from a private equity fund’s resale of HYBE shares after the IPO .
Min Hee Jin’s Testimony Against Bang
Min Hee Jin, the former CEO of ADOR (a subsidiary of HYBE), provided new testimony that has become a key part of the investigation. She stated that Bang told her in January 2019 that HYBE had no plans to go public. At the time, Bang was recruiting her to join Big Hit Music (now HYBE) as Chief Brand Officer.
“When I met Chairman Bang in January 2019 for annual salary negotiations, he told me, ‘There are no plans to go public.’ He then suggested, ‘Cash is better than stock for incentives. Let’s replace it with a signing bonus.’ I trusted his words and signed the contract.”
Min Hee Jin submitted this testimony as evidence in her ongoing legal dispute with HYBE. Her statement supports allegations that Bang misled not only investors but also key executives within the company .
HYBE’s Response to the Allegations
HYBE has consistently denied any wrongdoing. The company stated that it cannot verify Min Hee Jin’s testimony because it was a private conversation between her and Bang. HYBE maintains that there were no IPO plans in early 2019 and that full preparations for the listing only began in early 2020. The company has submitted related documentation to authorities to support this claim .
Bang’s legal representatives argue that all actions during HYBE’s listing process complied with the law. They also contend that other investors profited from selling their stakes and that Bang’s gains were compensation for bearing risks tied to a put option .
Background and Timeline of Events
HYBE went public in October 2020, but preparations for the IPO began much earlier. Evidence suggests that HYBE started hiring an auditor for the IPO process as early as September–October 2019, with a contract signed in November 2019. An accountant with IPO experience noted that at least a year of preparation is typically needed before listing, meaning plans likely existed in 2018 or earlier .
In June 2019, a private equity fund (PEF) founded by Bang’s close associates purchased about 25 billion KRW ($18.03 million USD) worth of HYBE shares from the company’s co-founder and vice president. After HYBE’s IPO, the fund sold these shares intensively, reaping nearly tenfold profits. Retail investors suffered heavy losses as stock prices plunged almost 60% within a week .
Legal Consequences for Bang Si Hyuk
If prosecuted and convicted of fraudulent disclosure and illicit gains under the Capital Markets Act, Bang could face a prison sentence of five years or more. If the profit exceeds 5 billion won, he could potentially face a life sentence. The Financial Services Commission referred Bang to prosecutors in July 2025, and the police have been investigating since late last year .
Public Reaction and Netizens’ Comments
The case has sparked strong reactions from Korean netizens, many of whom are demanding strict punishment for Bang. Online comments reflect public frustration and anger over the allegations.
“Those saying ‘Why would Bang tell Min Hee Jin that? She’s not an investor’ probably don’t even know what charges he’s facing, lol.”
“Is Bang even comparable to Min Hee Jin? He’s an economic criminal??”
“He needs proper punishment. If they go easy on him, everything will just go back to the same way.”
“If they only blame the female executives, won’t that put the artists at risk later? Female idols, especially, would be in danger.”
“For some people, pulling an idol’s hair is apparently worse than fraud, lol. Meanwhile, Bang commits large-scale fraud and still gets protected.”
Ongoing Legal Dispute Between Min Hee Jin and HYBE
Min Hee Jin is also engaged in a separate legal battle with HYBE over a 26 billion KRW ($19 million USD) put option. She claims HYBE owes her this amount based on her equity stake and ADOR’s operating profits. HYBE argues that it terminated the shareholders’ agreement with Min in July 2023, nullifying her right to exercise the put option .
Recently, HYBE accused Min of submitting fabricated evidence in this case. The company claimed that KakaoTalk conversations she presented as evidence appeared to be manipulated. HYBE provided an alternative version of the same conversation, which included messages suggesting Min directed an ADOR executive to stage the dialogue .
Min Hee Jin responded to these allegations by stating that the hearing only allowed ADOR’s legal team to conduct one-sided questioning. She plans to present her rebuttal at the next hearing on November 27, 2025 .
Impact on HYBE and the K-Pop Industry
The allegations against Bang Si Hyuk and the legal disputes with Min Hee Jin have raised concerns about the potential impact on HYBE’s executives and artists. Some netizens worry that female idols could be particularly at risk if female executives are unfairly blamed .
HYBE is home to globally renowned K-pop groups like BTS and NewJeans. The company’s shares closed at 286,500 won on September 14, 2025, down 1.9% from the previous session. This underperformed compared to the Kospi, which ended up 0.4% .
Source: Hani
