- By Swati Singh
- Tue, 21 Apr 2026 01:32 PM (IST)
- Source:JND
South Korean authorities are moving to arrest Bang Si-Hyuk, the founder and chairman of HYBE, in connection with a fraud investigation involving more than $100 million. The Seoul Metropolitan Police Agency confirmed on Tuesday that they have requested a court warrant from prosecutors to take the K-pop executive into custody. The investigation, highlighted by The Guardian, alleges that Bang misled investors back in 2019 by claiming the company had no plans for a public offering. This statement reportedly induced investors to sell their shares to a private equity fund at a lower valuation.
Shortly after these private transactions were finalised, HYBE launched its Initial Public Offering (IPO). Authorities believe the move was a calculated scheme to consolidate shares before the company's value surged on the public market.
According to the authorities, Bang Si-Hyuk secured approximately $129.1 million in illegal profits by falsely assuring shareholders in 2019 that HYBE would not go public. According to Reuters, he sold their stakes on an associate-linked private equity fund, from which Bang allegedly collected a 30 prcent kickback once the company's IPO launched. While Bang has previously denied these claims, HYBE has declined to comment on the ongoing investigation.
As reported by Korea Times, Bang Si-Hyuk faces severe legal consequences under South Korea's Capital Market Act, which mandates a minimum of five years in prison for financial fraud exceeding KRW5 billion. At the upper end of the scale, the law allows for a potential life sentence.
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Investigators began probing the case in late 2024, subsequently raiding both HYBE’s headquarters and the Korea Exchange. Bang has since undergone five rounds of questioning and remains under a strict travel ban.