HYBE Corporation founder and chairman Bang Si-hyuk has returned to South Korea to face an investigation regarding alleged securities fraud connected to the company's initial public offering (IPO) in 2020. South Korean news outlets reported that Bang arrived at Incheon International Airport on Monday, August 11. HYBE has confirmed Bang's return and stated that they "plan to cooperate with the police investigation as much as possible and will faithfully undergo the investigation".
Bang's return follows an internal email he sent to HYBE staff, acknowledging his extended absence abroad and the "confusion and frustration" it may have caused within the company. In the email, Bang vowed to "return to Korea to fully and transparently work with investigators and put these allegations to rest".
The investigation stems from allegations that Bang misled investors before HYBE's IPO. The Securities and Futures Commission has filed a criminal complaint against Bang, accusing him of violating the Capital Markets Act through unfair trading practices. Specifically, Bang is accused of deceiving minority shareholders into selling their shares to an investment firm secretly controlled by him and other HYBE executives. The allegation is that they later profited from those shares after the IPO.
Authorities are investigating whether Bang unjustly profited by misleading investors, including venture capital firms, into believing the IPO would be delayed. Regulators claim that IPO plans were on track, with HYBE even hiring an auditor. Investors, believing there would be a delay, reportedly sold their shares to a special purpose company supported by HYBE's executives. After the IPO, this company sold its shares, and regulators allege Bang received 30% of the profits, approximately 190 billion won (USD $137 million). Earlier reports stated Bang received 400 billion won (USD $288 million).
On July 24, 2025, the Seoul Metropolitan Police Agency's Financial Crime Investigation Division raided HYBE's headquarters as part of the investigation. The police executed a search and seizure warrant, marking the first time authorities have done so in connection with the case. The raid occurred at HYBE's Yongsan District office in central Seoul.
HYBE has consistently denied all allegations against Bang and the company. In a statement, HYBE stated that it would "diligently clarify that the listing at the time was carried out in compliance with all relevant laws and regulations," and that it would "actively cooperate" with authorities to resolve the issue. The company also stated, "We regret any concern caused by the recent reports related to our IPO process. HYBE is fully cooperating with the local authorities, including the financial regulators and the police, by submitting relevant materials and providing detailed explanations as part of the fact-finding efforts. We will take the necessary time to thoroughly demonstrate that the IPO was carried out in full compliance with laws and regulations".
In addition to the IPO fraud investigation, HYBE is also subject to a separate tax probe by the National Tax Service. The NTS has reportedly deployed two investigation teams to HYBE, launching a 90-day special tax probe and conducting a detailed analysis of accounting data.
Bang Si-hyuk founded Big Hit Entertainment in 2005, which later became HYBE. He is credited with transforming BTS into a global cultural phenomenon. As of July 24, 2025, Forbes cited Bang's net worth at $2.4 billion.
