IPO scandal: BTS's Hybe chairman Bang Si-hyuk summoned by police; faces second round of questioning

Seoul Metropolitan Police's Financial Crime Investigation Unit summoned Hybe chairman Bang Si-hyuk on September 22 for further questioning. He appeared at the Mapo office at 10 a.m.

, marking his second appearance after a public interrogation on September 15. According to a Hybe spokesperson cited by Yonhap News, the case is highly complex, and several more appearances may be necessary for Bang to finish his testimony.

Allegations tied to IPO process

The charges stem from suspicions that in 2019, Bang deceived Hybe's early investors by denying plans for an initial public offering, while at the same time arranging for executives to sell shares through a private equity fund they had created.

Investors, misled by these statements, sold their holdings, even though Hybe was already preparing for its IPO. The controversy now casts a shadow over the entertainment giant that manages global stars such as BTS, Seventeen, and NewJeans.

Unfair gains estimated at INR 1,090 crore

After IPO preparations advanced, the private equity fund reportedly sold its stake for huge profits. Bang allegedly secured 30% of those profits through a confidential contract, collecting around INR 1,090 crore.

Under South Korea's Capital Market Act, acquiring more than INR 28 crore through false information or fraudulent schemes carries penalties ranging from at least five years' imprisonment to life.

Official response and growing owner risk

Bang has consistently denied any misconduct, insisting that the IPO process followed all relevant laws and regulations, while pledging full cooperation with investigators. He also asserted that the IPO preparations and contracts with the private equity fund were not kept secret from investors. Still, industry insiders warn that this investigation highlights a serious "owner risk," threatening Hybe's corporate reputation and stability at a time when its roster of artists-BTS, Seventeen, NewJeans, and others-represents a major cultural and economic force in the K-pop industry.