"I expect the truth to be revealed" — Bang Si-hyuk breaks silence on IPO fraud investigation, to return to Korea amid raids at HYBE HQ

On August 6, 2025, K-media SBS News reported that Bang Si-hyuk addressed the IPO fraud probe involving HYBE for the first time. In a company-wide message, the 52-year-old said he will fly back to South Korea, pausing all work to aid the investigation.

Bang said his recent long stays overseas were for producing tracks for artists preparing comebacks and for pushing the company’s global growth. The chairman stated he will postpone urgent deals and meetings to inquire about his top concern.

"Due to the music work of artists preparing for a comeback and the expansion of the company's future business, my stay abroad has become longer in recent years. I will put urgent work and business meetings on hold and return to Korea as soon as possible to prioritize the authorities' investigation," Bang asserted.

Bang added he has already given a full statement in an earlier stage of the probe and will keep cooperating. He expects the facts to be clarified and will accept the outcome.

"I have already provided a detailed explanation of the circumstances surrounding the IPO during the financial authorities' investigation," he said.

He added:

"I will faithfully cooperate with the future investigation. I expect the truth to be revealed through this process, and I will humbly await the authorities' judgment. I am more aware than anyone that my personal issues continue to burden the company and the industry," The South Korean music executive added.

The case revolves around claims that HYBE misled investors ahead of its stock listing. Investigators allege the firm denied IPO plans publicly while discreetly selling shares and reaping the gains. These trades are now under close review by federal authorities. The investigation continues, with possible further raids before the August 16 deadline.

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HYBE faces extended raids in IPO fraud probe

HYBE, the label behind BTS, is under a fast-moving stock fraud probe after police raided its Seoul base on July 24, 2025. The operation, led by the Seoul Metropolitan Police Agency’s financial crimes unit, now has clearance to continue until August 16- with rare approval to search at any time, day or night.

Founder and chairman Bang Si-hyuk, along with three top executives, are accused of running a pre-IPO stock scheme tied to HYBE’s 2020 listing. Investigators say early investors were persuaded to sell shares to a firm secretly linked to Bang, which later sold them for large profits once the company went public.

Authorities estimate the alleged earnings at 200 to 400 billion won- around $146 million to $290 million. If confirmed, it would mark one of the biggest financial scandals in South Korea’s entertainment sector, putting HYBE’s image at risk.

The extended warrant bypasses normal rules under Article 125 of the Criminal Procedure Act, which limits night-time searches. Police say the change followed strong evidence found in the first raid, prompting them to expand both the timeframe and the scope, possibly covering all subsidiaries.

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The raids began after the Securities and Futures Commission, under the Financial Services Commission, filed a complaint. A police official said the president’s push to crack down on market crimes has sped up the case.

Edited by Ahana Mukhopadhyay