HYBE Chairman Bang Si-hyuk has been referred to prosecutors without detention over allegations of fraudulent trading connected to the entertainment company's 2020 initial public offering (IPO).
The Seoul Metropolitan Police Agency referred Bang and four others, including HYBE executives and private equity officials, to the Seoul Southern District Prosecutors' Office on 3 September on suspicion of violating South Korea's Capital Markets Act.
Police alleged that Bang and others misled existing shareholders in 2019 by saying there were no plans to take the company, then known as Big Hit Entertainment, public while preparations for an IPO were already underway.
According to authorities, shareholders were encouraged to sell their stakes to a private equity fund linked to people close to Bang, while investors in the fund were informed about plans for the company's listing.
HYBE subsequently debuted on South Korea's Kospi in October 2020. Police alleged that shares acquired through the fund were sold following the listing, resulting in approximately KRW 263.1 billion (US$190 million) in improper gains for those involved.
A court has also granted a police request to preserve assets equivalent to the alleged gains ahead of a potential prosecution.
The referral follows an investigation spanning approximately 20 months. Authorities began a preliminary investigation in December 2024 before raiding HYBE's Seoul headquarters in July 2025. Bang was questioned five times during the investigation.
Police sought arrest warrants for the HYBE chairman twice earlier this year, but prosecutors rejected the requests and called for further investigation.
Bang has denied wrongdoing, maintaining that the transactions were conducted legally and that he did not deceive investors regarding the company's IPO plans.
HYBE is the entertainment company behind artists including BTS, SEVENTEEN, and LE SSERAFIM.
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