HYBE Chairman Bang Si-hyuk faced intensive police questioning for approximately 13 hours on Monday over allegations that he illegally profited by misleading investors during the company's initial public offering process. The music executive, who founded the agency behind global superstars BTS, is suspected of earning around $140 million through fraudulent transactions that violated South Korea's Capital Markets Act.
Bang arrived at the Seoul Metropolitan Police Agency's financial crime investigation unit in Mapo District at 10 a.m. Monday morning as a formal suspect. Before entering the facility, he briefly addressed waiting reporters, stating, "I am sorry for causing concern with this matter. I will faithfully cooperate with today's investigation." He was surrounded by bodyguards and appeared visibly tense as he made his way into the building.
The interrogation lasted until late into the evening, with Bang finally leaving the police station at 11:48 p.m. When reporters attempted to question him about whether he had misled investors or what he had discussed during the lengthy questioning session, he declined to respond. Protected by his security team, he quickly entered a waiting vehicle without making any comments to the media.
Police investigators suspect that Bang, along with former HYBE executives, deliberately deceived existing shareholders during the company's IPO process by falsely claiming that no public listing was being planned. According to the allegations, while making these statements to current investors, Bang was secretly arranging for company shares to be transferred to a special purpose company under a private equity fund that he had established.
The investigation centers on a contract that allegedly entitled Bang to receive more than 30 percent of the proceeds from share sales connected to HYBE's eventual public listing. Authorities believe this arrangement allowed him to earn approximately 190 billion won, equivalent to about $140 million, in what they consider illicit profits obtained through investor deception.
HYBE, which serves as the management agency for BTS and several other prominent K-pop groups, issued a statement defending the company's actions. "It may take some time, but we will fully explain that the listing at the time was carried out in compliance with laws and regulations," the company said, maintaining that all procedures were conducted legally.
The case now moves forward as police review Bang's testimony to determine the next steps in their investigation. Special judicial police officers from the Financial Supervisory Service are conducting a separate examination of the allegations under prosecutorial supervision, indicating the serious nature of the charges and the government's commitment to thoroughly investigating potential financial crimes in the entertainment industry.
