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HYBE founder and Chairman Bang Si-hyuk has been referred to prosecutors over allegations that he misled investors ahead of the company's stock market listing. The case surfaced after BTS returned earlier this year and launched a much-awaited world tour following a nearly four-year hiatus during which the members completed their mandatory military service in South Korea.
Bang, who discovered and formed BTS in 2013 and has overseen the group's rise into global pop, was referred to prosecutors along with four others, including HYBE executives and private equity officials, without being detained.
The Seoul Metropolitan Police Agency's financial crimes unit said the scheme generated approximately 263.1 billion won ($193.4 million) in illicit profits for Bang and his associates, police say.
All five face charges of fraudulent trading under the Capital Markets Act, according to a Thursday announcement from the police agency.
The referral comes roughly 21 months after police opened a preliminary investigation into the case in December 2024.
Bang, who has denied wrongdoing, has been subject to an overseas travel ban since August 2025.
His legal team said in a statement that they have "consistently responded to the allegations with objective evidence and facts," adding, "We expect the allegations to be fully and transparently resolved through the legal process."
Authorities allege Bang made about 190 billion won in illegal profits from the transactions under investigation, including through an arrangement that gave him a 30% share of the fund's earnings when it later sold its HYBE stock.
Bang's net worth is estimated at $1.4 billion, according to the Bloomberg Billionaires Index. Police have been investigating the case since it was referred to them by the Financial Services Commission.
HYBE manages top K-pop acts including BTS, Seventeen, and Le Sserafim. Founded by Bang in 2005, the company went public in 2020 and has since grown into a major multi-label music conglomerate.
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