HYBE reportedly faces declining dividend from ₩700 to ₩200 per share amid Chairman Bang Si-hyuk’s ongoing IPO fraud investigation

On September 17, 2025, South Korean media outlet Bloter reported that HYBE is continuing a cautious shareholder return policy while facing legal risks tied to its chairman, Bang Si-hyuk. The company’s dividend has seen a sharp decline within just two years.

After introducing its first shareholder return policy in February 2023, HYBE reportedly paid ₩700 per share that year. However, the figure dropped to ₩200 in 2024. The total dividends fell from ₩29.2 billion to ₩8.3 billion.

The decline was seemingly linked to a major drop in net profit attributable to controlling shareholders. It fell from ₩187.3 billion in 2023 to only ₩9.4 billion in 2024. HYBE had promised to return up to 30 percent of annual profit to shareholders. In practice, it distributed 27 percent of profit as dividends in the first year. However, weaker earnings left little room to maintain payouts.

According to the same report, the cash flow also weakened. HYBE's free cash flow slipped from ₩54.6 billion in December 2023 to ₩19.2 billion in June 2024. Korea Ratings assessed that HYBE will likely keep generating positive free cash flow.

However, it warned that net profit is highly volatile and dividend growth is unlikely in the near term. HYBE representative said there are no specifics yet on expanding dividends, per Bloter. However, the sustainability report confirmed that the current shareholder return policy will remain valid until at least 2025.

On other hand, while dividends fell, HYBE reported its strongest-ever second-quarter revenue in 2025, with ₩705.6 billion in consolidated sales. Net profit attributable to controlling shareholders also climbed 24 percent year-on-year to ₩18.1 billion.

However, earnings per share stood at only ₩433.59, apparently far behind competitors, SM Entertainment and JYP Entertainment, which both reported over ₩1,000.

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Ongoing IPO fraud investigation against Bang Si-hyuk

The financial strain comes as Bang Si-hyuk, HYBE’s founder and chairman of the board, faces an expanding IPO fraud probe. He is under investigation by the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit over alleged violations of the Capital Markets Act.

Authorities suspect the Bang Si-hyuk misled investors ahead of HYBE's 2019 IPO and gained illicit profits estimated at ₩190 billion, per Bloter.

HYBE x Geffen Records announce contestants for forthcoming global girl group (Image via Getty)

According to a report by Hankyoreh, investigators are reviewing claims that Bang Si-hyuk told former ADOR CEO Min Hee-jin and other executives that there were no IPO plans. Meanwhile, a private equity fund linked to close associates allegedly began buying shares at discounted prices. Those shares were later sold after HYBE’s listing in 2020, allegedly generating nearly tenfold profits.

In recent months, the police raided HYBE’s Yongsan headquarters and the Korea Exchange to collect records. Bang Si-hyuk himself was questioned in person on September 15, 2025. He apologized for the concern caused and said he would fully cooperate with authorities.

The Financial Services Commission has also filed a criminal complaint over unfair trading practices. The case has been referred to the Financial Supervisory Service for further review.

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As the company’s largest shareholder, holding a 31.6 percent stake, Bang Si-hyuk continues to play a central role in management.

Edited by DEEPALI