HYBE chairman Bang Si-hyuk is now facing one of the biggest legal threats of his career. On April 21, 2026, South Korean police requested a detention warrant over allegations tied to HYBE’s IPO, intensifying what is already a major scandal for the company.
What are these HYBE IPO fraud allegations?
According to Reuters, police suspect Bang of illegal trading connected to HYBE’s stock market debut. Investigators believe that in 2019, HYBE (then known as Big Bang Entertainment) goes public and Bang Si-hyuk intentionally misled shareholders at that time.
He told the investors that the company had no plans to go public soon or that the listing would be delayed. The investors believed that the company wouldn’t be listed on the stock market for a long time, so they were convinced to sell shares early.
As reported by NBC News, police believe Bang was promised roughly 30% of profits from a private equity fund’s sale of HYBE shares after the listing. That fund was reportedly financed by HYBE executives. Authorities assume that later those shares were sold at a much higher valuation once the IPO went ahead. Investigators say Bang made roughly ₩190 billion in his personal profit, or about $136 million.
What Are The Allegations On Bang
- Bang allegedly misled existing investors about HYBE’s IPO plans in 2019.
- A private equity fund reportedly acquired shares before the public listing.
- After the IPO, Bang allegedly received a large share of the profits through a side deal.
- Police estimate the gains at roughly 190 billion to 200 billion won.
The probe reportedly began in late 2024. In 2025, authorities searched both the Korea Exchange and HYBE headquarters, according to Variety. If the allegations are proven, it could fall under South Korea’s Capital Market Act. In cases involving gains above 5 billion won, penalties can start at five years in prison and extend to life imprisonment.
Bang Si-hyuk And HYBE Denyed Allegations.
Throughout the ongoing investigation, Bang Si-hyuk has denied the allegations. His legal team expressed disappointment over the detention warrant request. They highlighted his “full and consistent” cooperation over an extended period as quoted by Billboard. HYBE has also said Bang denies all fraud allegations and that the company is cooperating with authorities.
Still, the fallout could be huge for HYBE. Bang remains central to the company’s identity. But this case raises bigger questions about investor trust, and what happens if its founder is confined while the label continues managing some of K-pop’s biggest acts, including BTS.
For now, these are allegations under investigation, not a final court ruling.
