South Korean police have concluded their investigation into HYBE Chairman Bang Si-hyuk over allegations of fraudulent trading, according to a report by News1. The case is linked to the company’s initial public offering.
Seoul Metropolitan Police Commissioner Park Jung-bo said during a regular press briefing on August 24, 2026, that he had been informed the investigation related to Bang had been completed and that the necessary procedures to wrap it up were underway. When asked whether police would seek an arrest warrant for Bang again, Park said an announcement was expected soon.
The investigation centered on allegations that Bang misled early HYBE investors before the company’s 2020 IPO. At the time, HYBE was operating as Big Hit Entertainment. Investigators alleged that in 2019, Bang Si-hyuk told some investors there were no immediate plans for a public listing, or that an IPO would be delayed. Some shareholders subsequently sold their stakes to a private equity fund reportedly connected to people close to Bang.
HYBE later proceeded with its IPO, and investigators alleged that Bang received a share of the profits generated from the sale of those stakes. Police estimated his alleged illicit gains at roughly 190 billion to 260 billion won, with different reports citing different calculations.
Bang denied the allegations, maintaining that his actions were lawful and complied with the regulations in place at the time. Police previously sought an arrest warrant for Bang Si-hyuk twice in April, but prosecutors rejected both requests and called for additional investigation.
The latest announcement indicates that police have now completed the investigative work and are preparing to close the case, with the question of any renewed warrant request expected to be addressed soon.
Inside the long-running investigation into Bang Si-hyuk’s HYBE IPO dealings
The investigation into Bang Si-hyuk’s alleged IPO-related misconduct has remained under scrutiny by both police and prosecutors since the probe began in late 2024. The case drew additional attention after the Securities and Futures Commission, under South Korea’s Financial Services Commission, filed a complaint concerning the alleged transactions.
At the center of the investigation is an alleged agreement involving a private equity fund. Authorities are examining whether the fund sold its HYBE shares following the company’s 2020 listing.
Additionally, they are also investigating a subsequent transfer of around 30% of the resulting profits to Bang Si-hyuk under an agreement that has not previously been disclosed. Investigators have estimated the amount involved at approximately 190 billion won, or around $129 million.
The allegations are being examined under South Korea’s Capital Markets Act. The law prohibits misleading statements and deceptive practices in financial transactions, including transactions involving shares of companies that have not yet been publicly listed.
The investigation lasted for more than a year and involved repeated questioning of Bang Si-hyuk. Authorities reportedly questioned him five times beginning in September 2025. His first reported session took place on September 15 and lasted for more than 14 hours. He was questioned again on September 22, followed by additional sessions on November 5, 7 and 9. No further summons involving Bang were reported after late 2025.
Investigators also conducted search and seizure operations at several locations as part of the probe. These included HYBE’s headquarters and the Korea Exchange, where authorities sought materials relevant to the alleged transactions.
Bang has remained under a travel restriction since August 2025. The restriction later became a point of attention when the U.S. Embassy in South Korea reportedly asked the Korean National Police Agency on April 19, 2026, to cooperate in allowing Bang Si-hyuk to travel to the United States for BTS’s ongoing world tour.
The case has also had an impact on HYBE’s stock performance. Following reports that authorities had sought an arrest warrant for Bang, HYBE shares reversed earlier gains and fell 2.9%, while the broader KOSPI was up 1.8% over the same period.
The potential legal consequences could be substantial if investigators ultimately establish violations of the Capital Markets Act. For cases involving unlawful gains of more than 5 billion won, the law can provide for a minimum prison sentence of five years, with life imprisonment possible in more serious circumstances.
Financial penalties could also be significant. Authorities may impose fines equivalent to three to five times the amount of the unlawful gains. With the total amount potentially under review reaching as much as 400 billion won, the possible financial liability could therefore be considerable.
Edited by Adrija Chakraborty
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