HYBE Chairman Bang Si-hyeok Referred to Prosecution Over Alleged Market Manipulation

In a significant development for the South Korean entertainment industry, the Seoul Metropolitan Police Agency has referred HYBE Chairman Bang Si-hyeok to the Seoul Southern District Prosecutors’ Office. Bang and four other individuals—including high-ranking HYBE executives and officials from private equity firms—are facing charges of fraudulent market manipulation, a move that follows a nearly two-year-long investigation.

The Allegations

The investigation, spearheaded by the Metropolitan Crime Investigation Division’s Financial Crime Investigation Team, centers on activities dating back to 2019. According to police reports, the suspects are alleged to have misled existing HYBE (then Big Hit Entertainment) shareholders, including various venture capital firms, regarding the company’s future prospects.

Authorities allege that while preparations for an Initial Public Offering (IPO) were actively underway, Chairman Bang and his associates falsely claimed that no such plans existed. By discouraging shareholders from holding onto their equity, the group purportedly facilitated the sale of these shares to a specific private equity fund. Once the company went public, the suspects allegedly sold these acquired shares, generating approximately 263.1 billion won (roughly $197 million USD) in illicit profits.

A police official stated, “The management intentionally concealed information regarding the planned listing to secure personal gains at the expense of existing shareholders. This behavior severely undermines the fairness and credibility of our capital markets.”

Legal Complications and International Manhunt

The legal proceedings have been fraught with difficulty. The police had previously sought arrest warrants for the suspects in April and May, though both requests were rejected by the prosecution citing a need for supplementary investigation.

Furthermore, the case has taken a global turn involving former HYBE Chief Investment Officer (CIO) Kim Jung-dong. Kim reportedly fled the country just as police began their search-and-seizure operations. An arrest warrant has been issued, and he is currently the subject of an Interpol Red Notice, designating him as a wanted individual internationally. In a major tactical victory for investigators, the court has approved the pre-indictment seizure of assets related to the alleged crimes to facilitate potential recovery.

HYBE’s Stance

Despite the formal referral of the case to the prosecution, HYBE has remained firm in its defense. The company has categorically denied all allegations of wrongdoing, maintaining that the actions of Chairman Bang and the involved executives did not violate the Capital Markets Act.

This case, which highlights the complexities of corporate governance and financial transparency within the K-pop industry, serves as a stark reminder of the scrutiny facing major entertainment conglomerates. As the prosecution reviews the evidence provided by the police, the future of HYBE’s leadership remains under intense public and legal observation.

For more details on the ongoing investigation, you can read the original report on the [market manipulation](https://www.starnewskorea.com/en/music/2026/09/03/2026090312230997851” target=”_blank” rel=”nofollow”>market manipulation) allegations.