On May 28, South Korea’s Financial Supervisory Service (FSS) is set to request a formal criminal investigation into HYBE chairman Bang Si Hyuk over allegations of fraudulent securities transactions related to a 400 billion KRW (~290 million USD) deal. 

The case dates back to 2019, when Bang Si Hyuk allegedly misled HYBE investors by claiming there were no plans for an initial public offering (IPO), prompting them to sell their shares to a private equity fund (PEF) connected to him. At the same time, HYBE was allegedly secretly preparing to take their company public and file for an IPO.

Bang Si Hyuk later profited from a 30% return-sharing agreement with the PEF, a deal not disclosed in HYBE’s IPO filings. The FSS now considers this unfair trading under the Capital Markets Act, which could carry life imprisonment or a minimum of five years if the illegal gains exceed 5 billion KRW (~3.64 million USD).

HYBE maintains that all transactions were legally vetted, but the case has intensified following earlier media reports. Investigations by both the FSS and Seoul police are ongoing. Experts warn that the case highlights serious concerns about transparency and could shake investor trust in Korea’s capital markets if left unchecked.

Korean netizens gathered in online communities, with many expressing shock, while a few claimed they weren't surprised and had expected such behavior from the HYBE chairman. They commented:

"I really hope Bang Si Hyuk gets arrested."

"There won't be enough prisons at this rate."

"Please just get arrested."

"Didn’t they completely overhaul the staff in 2019? Maybe it wasn’t just about filling the company with his own people. It could’ve been linked to employee stock ownership plans ahead of the IPO. I heard the vice president, who had the second-largest shares after Bang Si Hyuk, sold almost all of them and left."

"Wow, how could this happen to a company designated by the Ministry of Employment and Labor as a 'top job creator'? They've caused so much public controversy. When will the designation be revoked, and when will they be audited? The people defending HYBE also defend the ministry; is this case an exception?"

"Justice, please. lol."

"I wonder how many high-powered lawyers he'll hire?"

"Even if this happens, it'll probably just end with a fine. Has there ever been a proper punishment for economic criminals?"

"I hope they at least impose and collect a proper fine. I’m so sick of how lenient the courts are with celebrities and big companies."

"Lol, bye~."

"Unbelievable."

"He's not gonna serve any time in prison and will just receive a fine."

"Didn’t this already blow up before? Why are they only indicting now?"

"People, please abide by the law."

"Geez."

SEE ALSO: Prosecutors raid HYBE headquarters amid insider trading investigation