Hybe chairman Bang Si-hyuk under investigation for fraud as BTS nears full-group comeback from military service

As BTS moves closer to a long-awaited reunion, their agency Hybe is facing serious questions at the top. Chairman Bang Si-hyuk is reportedly under investigation by South Korea’s financial watchdog over alleged fraud and unfair trading practices.

Local media reports say the Financial Supervisory Service (FSS) is examining claims that Bang misled early investors during Hybe’s pre-IPO phase in 2019. Investigators are said to have evidence that Bang privately told some institutional investors that a public listing was unlikely — while still preparing for an IPO.

Bang allegedly struck profit-sharing deals with private equity funds linked to acquaintances and made around 400 billion won (roughly £228 million) after Hybe’s stock launch in 2020. These deals were not included in official filings, which may breach Korean capital market laws.

Neither Hybe nor the FSS has confirmed the full details of the case, but both have declined to deny the investigation’s existence. Reports suggest the FSS may fast-track the case to prosecutors, with a separate police probe also underway.

Internet reacts to this

Various people have reacted to this news. A user wrote on X, “All hybe groups are built on fraudulent charts and numbers.” Another person defended Bang Si-hyuk and wrote, “No! A former HYBE/Big Hit executive is supposedly under investigation for alleged insider trading in 2021. While some are attempting to connect this to recent Bang Si-hyuk news, the individual in question is reportedly no longer affiliated with HYBE.” 

A third person wrote, “Hybe is known for being fraudulent.”

BTS return from the military

While the situation centres on Hybe’s financial dealings, it has caused concern among fans hoping for a smooth return of BTS. The group is expected to reunite later this year, once all seven members have completed their military service by June 21 — the date of Suga’s discharge.

Jin and J-Hope have already returned. RM and V are due to finish service on June 10, with Jungkook and Jimin following the next day.

Hybe has confirmed that new BTS content and performances are in development. In March, CEO Park Ji-won said the members would need time to prepare creatively after their service ends.