HYBE founder Bang Si-hyuk referred to prosecutors

South Korean police have referred HYBE founder and chairman Bang Si-hyuk to prosecutors, seeking indictment over allegations of fraudulent trading related to the company's 2020 initial public offering. The Seoul Metropolitan Police Agency made the referral on Thursday, September 3, 2026, to the Seoul Southern District Prosecutors Office. The allegations center on events in 2019, when HYBE was known as Big Hit Entertainment. Police claim Bang and associates misled existing shareholders by indicating there were no immediate plans for an initial public offering. These shareholders were allegedly encouraged to sell their stakes to a special-purpose vehicle linked to a private equity fund connected to Bang. Simultaneously, investors in that fund were reportedly given indications that an IPO was planned or likely. Following Big Hit's stock market listing in October 2020, the fund allegedly sold the acquired shares at a substantial profit. Investigators assert that Bang received a significant portion of these profits, estimated at around 30 percent, through a side agreement. Police have calculated the alleged illicit gains at approximately 263.1 billion won, or about $193 million USD.