Home > National > Social Affairs

Financial watchdog questions HYBE Chairman Bang Si-hyuk over IPO delay

Published: 03 Jul. 2025, 17:05 Updated: 03 Jul. 2025, 19:39

Bang Si-hyuk, founder and chairman of K-pop agency HYBE, second from the left, attends a conference held in Yeongdeungpo District, western Seoul, on Feb. 20. [YONHAP]

HYBE Chairman Bang Si-hyuk, who is accused of misleading investors of the K-pop powerhouse’s initial public offering (IPO) plans, was questioned by Korea's financial watchdog over his alleged wrongdoings, the firm confirmed Thursday.

“He provided a full explanation to regulators about the issues they raised,” HYBE told the Korea Economic Daily.

The HYBE executive was reportedly summoned for questioning by the Financial Supervisory Service in late June.

Bang allegedly misled investors by rejecting plans for an IPO in 2019, when HYBE was known as Big Hit Entertainment, and persuading them to sell their shares to an acquaintance’s private equity fund (PEF) that promised him a commission in return, all the while preparing for the listing, potentially violating the Financial Investment Services and Capital Markets Act.

HYBE was listed on the Korea Exchange in October 2020. Bang allegedly received 400 billion won ($294 million), or 30 percent of the PEF’s investment income, after the company went public as a result of the deal, but failed to disclose this in the company’s securities report.

HYBE has maintained that “all transactions underwent legal review and were conducted in full compliance with the law."

The financial watchdog reportedly gathered evidence in May of the executive misleading former shareholders. Investigations are currently ongoing.

Police are also looking into the allegations. The prosecution has so far twice rejected police requests for a search warrant to raid the HYBE office.

HYBE shares were priced at 135,000 won each at the time of its IPO, surpassing a market cap of 8 trillion won on its first day of trading.

Shares slipped 4.75 percent from the previous session to finish at 290,500 won on Thursday, for a market cap of 12.99 trillion won.

BY KIM JU-YEON [[email protected]]