Bang Si-hyuk undergoes second police investigation over alleged IPO fraud, to face possible travel ban and multiple summons

On September 22, 2025, Yonhap News reported that Chairman Bang Si-hyuk was summoned for a second round of questioning by the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit. He arrived at the Mapo office at 10:00 a.m., just a week after his first public summons on September 15.

According to Yonhap, investigators stated that follow-up was necessary because not all statements could be completed during the first session, and further questioning may still be required. Reports also suggest that a travel ban for Bang Si-hyuk is under consideration as authorities continue to analyze evidence.

According to Munhwa, a Seoul Metropolitan police official explained that seized materials are being reviewed alongside testimonies. They also stated that measures such as travel restrictions are being considered to ensure cooperation. The officials said:

"We are currently investigating as there are additional matters to confirm. We will consider whether to conduct further investigations based on the results. We are currently analyzing the content of the previous summons and seized materials.We are proceeding with necessary investigation procedures, including imposing a travel ban."

For those unaware, Bang Si-hyuk is accused of misleading investors in 2019, before HYBE’s initial public offering, by stating that there were no plans for a stock listing. Based on those assurances, investors allegedly sold their shares to a private equity fund created by executives tied to the company.

However, records indicate that pre-IPO steps were already underway. Once the listing was completed, the fund reportedly sold the shares at a large profit. Investigators allege that Bang Si-hyuk received around 190 billion KRW in illicit gains, including 30% of the resale profits through a prior nondisclosure agreement.

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Background and ongoing developments in HYBE’s Chairman Bang Si-hyuk IPO case

According to Yonhap News, under the Capital Market Act, misleading investors or using illicit schemes in the trade of unlisted stocks can result in severe penalties. These include life imprisonment if profits exceed 5 billion KRW. Police previously raided HYBE’s Yongsan headquarters and the Korea Exchange to secure documents related to the listing.

Bang Si-hyuk has denied any wrongdoing. His side has maintained that the IPO process followed all laws and regulations and that contracts with the private equity fund were not hidden from investors. Industry sources have also suggested that some investors profited from their sales, complicating the picture.

HYBE Chairman Bang Si-Hyuk Attends Debate Hosted By The Kwanhun Club - Source: Getty

Despite this, the investigation is expected to widen, with more summonses anticipated in the coming weeks as authorities piece together the timeline of events.

The allegations stem from HYBE’s transition in 2019, when Bang reportedly told investors there were no IPO plans. Months later, however, filings showed that procedures for appointing an IPO-designated auditor had already begun.

By October 2020, HYBE completed its public listing, achieving one of the most significant debuts in the entertainment sector. The discrepancy between earlier assurances and later actions is now at the center of the probe.

According to multiple reports, Bang Si-hyuk’s estimated 190 billion KRW profit came from a confidential earn-out agreement tied to the private equity fund’s share sales. This was not disclosed to the Korea Exchange during the listing process. While Bang Si-hyuk has publicly apologized for the concerns raised, he continues to insist the IPO was carried out lawfully.

The investigation has gained momentum in recent months. Police have not only questioned Bang twice but also imposed measures such as evidence seizures and potential exit restrictions. The Financial Services Commission has filed its own criminal complaint, while the Financial Supervisory Service is conducting a parallel review under prosecutorial guidance.

Alongside this case, police also announced progress in unrelated matters. This will include unauthorized micropayment scams involving KT subscribers and defamation complaints linked to Supreme Court Chief Justice Cho Hee-dae.

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With multiple summons expected and a travel ban under review, the next stages of the investigation will determine whether the HYBE founder faces trial for violations of the Capital Market Act.

Edited by Shubham Soni