Business & Finance

South Korean police seek indictment of Hybe chairperson Bang Si-Hyuk over alleged investor fraud

Authorities allege the founder behind BTS misled 2019 investors ahead of an initial public offering, while his legal team denies wrongdoing.

Updated Sep 3, 2026 · 10:18 UTC2 reports

The short version

Seoul police have formally requested that prosecutors indict Hybe founder Bang Si-Hyuk and four others on charges of violating the capital markets act.
Investigators allege Bang misled investors in 2019 about public offering plans to push them into selling shares to a private equity fund linked to a side payout agreement.
Bang denies any wrongdoing, asserting that his team has provided objective evidence to resolve the claims legally.
Prosecutors must now determine whether to formally indict Bang or order further police investigation.

The Seoul Metropolitan Police Agency referred Hybe founder and chairperson Bang Si-Hyuk to the Seoul Southern District Prosecutors’ Office with an indictment request for alleged capital markets act violations.[ABC News · Associated Press]
Police claim Bang told investors in 2019 that Hybe had no near-term public offering plans, leading them to sell shares to a private equity firm shortly before the company pursued an IPO.[ABC News · Associated Press]
Authorities allege the private equity fund agreed to give Bang 30% of post-IPO stock sale profits, amounting to an estimated 200 billion won ($147 million).[ABC News · Associated Press]
Police also referred four other individuals, including private equity fund staff and Hybe executives, for prosecution.[ABC News · Associated Press]
Prosecutors previously declined police arrest warrant requests for Bang in April and May, citing inadequate justification and an incomplete investigation.[ABC News · Associated Press]

It is uncertain whether prosecutors will proceed with a formal indictment or require police to conduct further investigation.[ABC News · Associated Press]