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Hybe Founder Bang Si-hyuk Referred to Prosecutors Over Alleged IPO Fraud

Tougher action on suspected IPO fraud follows months of investigations including police raids and document seizures.

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Bang Si-hyuk, founder and chairman of K-pop powerhouse Hybe that manages BTS, attends a conference of the Federation of Korean Industries in Seoul in this Feb. 20, 2025, file photo. (Yonhap)

Overview

  • The Securities and Futures Commission formally sent fraud charges against Bang Si-hyuk and three former Hybe executives to Seoul prosecutors under the Capital Markets Act on July 16.
  • Regulators allege Bang misled investors in 2019 into selling shares to a special purpose company while preparations for Hybe’s IPO were already underway, netting nearly 400 billion won in illicit gains.
  • This referral marks the first time the Lee Jae-myung administration has escalated enforcement to prosecute a leading chaebol figure for capital markets violations.
  • Convictions for unfair trading under the Capital Markets Act carry prison terms ranging from five years to life, making this the strongest disciplinary measure available to financial authorities.
  • Hybe has apologized for investor concerns, insisted its IPO complied with listing laws and pledged full cooperation to clarify allegations and restore market trust.