Bang Si-hyuk, the founder of K-pop giant Hybe, is facing serious legal trouble. South Korean police are seeking a warrant for his arrest linked to a fraud investigation regarding Hybe’s 2020 initial public offering (IPO). This news comes from various reports in Korean media.
Police allege that Bang engaged in unfair trading, potentially violating the Capital Markets Act. They claim he made around 190 billion won (about $129 million) illegally during Hybe’s IPO process. The crux of the case centers on an alleged private equity arrangement that misled early investors. Authorities suggest that Bang guided these investors to sell their shares to a fund associated with his acquaintances, then received a significant profit share once Hybe went public. Bang has denied any wrongdoing.
Just a day before the police announced their warrant request, Seoul’s police commissioner stated that the investigation was nearing its end. Bang has been unable to leave South Korea since last August as the investigation unfolded.
Hybe has not yet commented publicly on the latest developments, but the company’s stock price dropped by 2.9% following the news of the warrant.
This investigation began back in December 2024 when authorities started looking into whether Bang had undisclosed profit-sharing agreements before Hybe’s IPO. A police raid at Hybe’s headquarters occurred in July 2025. Bang returned to South Korea voluntarily to cooperate with the investigation. By December 2025, a court approved the seizure of Hybe shares belonging to Bang worth approximately $118 million.
This situation marks a significant moment for Bang, who has played a vital role in the global music industry. He founded Big Hit Entertainment in 2005 after leaving JYP Entertainment, earning the nickname “Hitman Bang” due to his success as a songwriter and producer. After facing potential bankruptcy in 2007, he revitalized the company by bringing in BTS, a boy band that has since become a global sensation.
BTS debuted in 2013 and quickly rose to fame, breaking barriers for K-pop artists worldwide. They became the first Korean group to reach No. 1 on the Billboard Hot 100 and are currently on a sold-out global tour for their new album, Arirang.
BTS’s massive success transformed Big Hit into a worldwide phenomenon. The company went public in October 2020, marking South Korea’s largest IPO in three years. It rebranded as Hybe in 2021 and has since expanded by acquiring various local labels. Notably, in 2021, Hybe purchased Ithaca Holdings for $1.05 billion, gaining management rights for stars like Justin Bieber and Ariana Grande.
Today, Hybe stands as the leading force in K-pop. Bang’s stake in the company is estimated to be worth about 4.8 trillion won ($3.6 billion), making him the only self-made billionaire in Korean entertainment.
As this story unfolds, it raises questions about accountability in the entertainment industry and the impact of leadership on a company’s trustworthiness. The outcome of Bang’s situation could reshape the landscape of K-pop and beyond.
For more details, you can follow the coverage from Korea Herald.
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