HYBE chairman Bang hit with travel ban over $140 million IPO scandal

Seoul: Kpop group BTS’s agency HYBE, which rose to global prominence under chairman Bang Si-hyuk, is now facing turbulence as South Korean authorities tighten their probe into the company’s leadership.

The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit confirmed on Wednesday that Bang is under a travel ban in connection with alleged violations of the Capital Markets Act.

BTS, the world’s biggest K-pop group, played a pivotal role in transforming HYBE (formerly Big Hit Entertainment) into an international powerhouse. When the company went public in 2020, BTS alone contributed nearly 90% of its revenue. Their worldwide tours, record-breaking albums, and brand partnerships fuelled HYBE’s rapid expansion into a multi-label empire, acquiring Source Music, Pledis Entertainment, and Ithaca Holdings. Any controversy involving Bang now risks damaging not only HYBE’s reputation but also investor confidence in the broader K-pop industry.

According to investigators, the allegations trace back to 2019, when HYBE was preparing for its IPO. Bang allegedly misled shareholders into believing no immediate listing was planned, prompting some to sell their stakes to a private equity fund’s special purpose company (SPC) backed by HYBE executives. The SPC then sold its HYBE shares after the IPO, with 30% of the profits reportedly funnelled to HYBE’s largest shareholder. Authorities believe this arrangement allowed Bang to secure illicit gains worth around ₩190 billion — equivalent to $140 million or ₹1,170 crore.

The probe, launched in December 2024, has already included raids on the Korea Exchange in June and HYBE’s Yongsan headquarters in July. HYBE has denied wrongdoing, insisting that all listing procedures complied with regulatory requirements.