Hybe chairman Bang Si-hyuk, the music mogul behind BTS, is under renewed scrutiny as police continue to investigate claims of investor deception linked to the company’s 2019 IPO preparations. On September 22, Bang appeared before Seoul Metropolitan Police’s Financial Crime Investigation Unit for a second round of questioning, arriving at the Mapo office at 10 a.m.This comes just a week after his first public interrogation on September 15.

According to officials, the case is highly complex, and Bang may need to attend multiple additional sessions before his testimony is complete. The allegations, first raised in 2019, accuse Bang of misleading early investors by denying that Hybe was preparing to go public. At the same time, executives reportedly set up a private equity fund, using it to sell company shares and later secure large profits once IPO preparations advanced.

HYBE Chairman

Reports suggest that some investors, believing Hybe had no immediate IPO plans, sold their shares too early. Meanwhile, the fund allegedly benefited enormously, with profits reaching around INR 1,090 crore. A confidential agreement is said to have given Bang 30 percent of those gains.

Under South Korea’s Capital Market Act, obtaining more than INR 28 crore through fraud or false information can carry penalties ranging from at least five years in prison to life imprisonment.

Bang has strongly denied all accusations, insisting that the IPO process was handled in accordance with the law. He emphasized that the contracts and fund arrangements were not hidden from investors. A Hybe spokesperson also confirmed that the company is cooperating fully with the investigation.

Still, the ongoing case has fueled wider concerns about “owner risk” in South Korea’s entertainment industry, the dangers that come when a company’s reputation and stability are tied too closely to its founder. For Hybe, which manages global stars such as BTS, Seventeen, and NewJeans, the stakes are particularly high.

As the investigation continues, both fans and investors are watching closely, knowing that the outcome could have significant implications not only for Hybe’s image but also for the K-pop industry at large. Bang Si-hyuk remains one of the most influential figures in K-pop, credited with transforming BTS into a worldwide phenomenon. But with the IPO scandal under the spotlight again, his leadership faces its most difficult test yet.

Also Read: From IPO To Investigation: HYBE Chairman’s Controversial Deal Exposed

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