Hybe founder and Chair Bang Si-hyuk attends attends the ceremonial inauguration of President Lee Jae Myung at Gwanghwamun Square in Jongno-gu, central Seoul, Friday. (Newsis)
Hybe founder and Chair Bang Si-hyuk attends attends the ceremonial inauguration of President Lee Jae Myung at Gwanghwamun Square in Jongno-gu, central Seoul, Friday. (Newsis)

Though Bang Si-hyuk, the K-pop mogul behind BTS, has enjoyed enormous success with Hybe’s global rise and a personal fortune nearing 3.5 trillion won ($2.5 billion), his career now faces one of its toughest tests. Korea’s regulators have launched a rare multiagency probe into alleged stock manipulation tied to the 2019 initial public offering of Hybe (then Big Hit Entertainment). The legal storm threatens both his reputation and the company’s credibility.

Bang under fire

  • Founder in spotlight: Bang Si-hyuk, the architect behind BTS’ global success, faces allegations of misleading investors ahead of Hybe’s 2019 IPO.
  • Charges: Accused of unfair trading, allegedly pocketing half of the 400 billion won raised.
  • Bang’s response: Broke his silence in a letter to employees, pledging full cooperation with authorities.

Multi-agency crackdown

  • FSC referral: The Financial Supervisory Commission handed the case to prosecutors — its toughest measure.
  • Police raids: Offices of Hybe and the Korea Exchange were searched.
  • Tax probe: The National Tax Service launched an intensive investigation using its special bureau.
  • Extraordinary scope: All four state arms — prosecutors, police, regulators, NTS — simultaneously targeting Hybe.

Investor unease

  • Shareholders shifting: Netmarble cut its stake by 2.6 percent in May; The National Pension Service trimmed holdings in June 2024.
  • Partnership strains: NFT venture with crypto firm Dunamu wound down after losses.
  • Bang remains key: Largest shareholder with 31.57 percent stake.

Market turmoil

  • Stock swings: Hit 323,000 won on July 2, then plunged 24 percent to 246,000 won by July 30.
  • Partial rebound: Now back near 283,500 won but still below IPO levels.
  • Value trap fears: Shares still lag far behind peak despite solid earnings.

Outlook

  • Analysts’ view: Despite risks, Hybe retains strong fundamentals — BTS’ comeback, girl group Katseye’s rise and expansion into Latin America.
  • Bottom line: Legal storm around Bang threatens Hybe’s credibility, but market watchers still bet on long-term growth.