Bang, the influential music executive who oversaw HYBE’s transformation into a global entertainment powerhouse, appeared before the Financial Supervisory Service (FSS) late last month to address accusations that he misled investors in the run-up to the company’s 2020 stock market debut, sources from the FSS said Thursday.
According to the allegations, Bang privately informed early investors and venture capital firms that HYBE had no plans to go public, only to subsequently arrange for those stakeholders to sell their shares to a private equity fund reportedly controlled by a close associate.
That fund then profited significantly from HYBE’s IPO, generating an estimated 400 billion won, or roughly $294 million.
Industry sources said Bang had a profit-sharing agreement with the fund — entitling him to more than 30 percent of its trading gains — but failed to disclose the arrangement in HYBE’s official securities filings. Regulators are investigating whether the alleged omission constitutes a breach of disclosure requirements under South Korean financial law.
The FSS is currently reviewing the case and is expected to determine next steps through the Financial Services Commission’s Securities and Futures Commission. A formal referral to prosecutors remains under consideration.
HYBE, formerly known as Big Hit Entertainment, went public in October 2020 and quickly became one of South Korea’s most valuable entertainment companies, propelled by the global success of BTS and an expanding roster of K-pop talent and international acquisitions.
Neither HYBE nor Bang has publicly commented on the investigation.
reporter
Kim Dong-young
davekim0807@ajupress.com
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