The Seoul Metropolitan Police Agency building. Photo Credit: hyolee2
South Korean authorities’ IPO-focused investigation into Hybe chairman Bang Si-hyuk looks to be intensifying. Now, a push for criminal charges is ramping up, and police have reportedly raided the Korea Exchange in connection with the probe.
Both developments emerged in a fresh batch of regional reports, with the overarching investigation having entered the media spotlight towards 2024’s end. Like we summed up then, “Hitman” Bang is reportedly grappling with scrutiny centering on the 2020 IPO of Hybe (Big Hit Entertainment at the time).
Regarding the “reportedly” usages: Technically, South Korea’s Financial Supervisory Service (FSS) hasn’t publicly weighed in on the matter, and even coverage from Seoul-based outlets is citing purportedly well-informed sources. In short, though, Bang allegedly “misled investors” in 2019 by maintaining that an IPO wasn’t in the cards for the K-pop giant.
Subsequently, at least a portion of the same investors reportedly sold their Hybe shares to private equities associated with Bang. (Those private equities include STIC Investments, Estone Equity Partners, and New Main Equity, according to the Korea Economic Daily.)
Of course, the IPO process was in reality underway at the time. Under his reported private-equity side agreements, 52-year-old Bang was entitled to a 30% profit-share commission (ultimately coming out to nearly $300 million) once the entities had sold their post-listing shares.
On the other hand, he would have reportedly been on the hook for their stakes plus interest had the IPO failed to materialize in keeping with the contractually outlined timetable. It probably doesn’t need saying now, but Hybe allegedly neglected to disclose the reported side agreements in regulatory filings, and out-of-the-loop investors definitely didn’t profit from the private equities’ reported selloff.
Hence the evidently far-reaching inquiry – and the Financial Supervisory Service’s reported questioning of Bang in late June.
Per the Korea JoongAng Daily, that competition watchdog reportedly considered, but eventually decided against, fast-tracking the case directly to prosecutors.
Instead of this approach, the entity will refer the possible Capital Markets Act violations to the Financial Services Commission’s investigatory sub-commission, the same outlet indicated of the comparatively thorough approach.
Placing that information on the backburner, the Seoul Metropolitan Police Agency is carrying out a separate investigation into the identical matter, we previously noted. And as part of the parallel probe, officers have reportedly raided the offices of the Korea Exchange.
Beyond the obvious – that the raid sought to obtain evidence concerning Hybe’s 2020 IPO – local outlets haven’t shed light on too many details here.
But especially ahead of BTS’ much-anticipated comeback, it’ll be worth tracking the reported investigation and any related fallout. More immediately, Hybe shares (KRX: 352820) have slipped by almost 11% during the past five trading days.
Nevertheless, they’re still up 40% from 2025’s beginning, for a per-share price of ₩277,500 ($202) when the market closed today.
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This post was originally authored and published by Dylan Smith Digital Music News via RSS Feed. Join today to get your news feed on Nationwide Report®.
