Man behind BTS referred to prosecution over allegedly lying to shareholders
Seoul police referred Ban Si-hyuk, chairman of HYBE, the entertainment giant behind boy band BTS, to prosecutors Thursday over allegations that he deceived early investors in the agency into selling their stakes before the company went public. Police did not request an arrest warrant for him. Bang is accused of unfair trading in violation of the Capital Markets Act. The police alleged that in…
According to prosecutors in Seoul, HYBE chairman Ban Si-hyuk is being referred to the courts over allegations that he misled early investors in the entertainment company by claiming it had no plans for an initial public offering in 2019. This led shareholders to sell their stakes to a special purpose company set up by a private equity fund controlled by Ban, even as BigHit Music was in the process of listing.
The police allege that Ban collected around 30 percent of the proceeds from the sale under an undisclosed agreement. Financial authorities estimate Ban's improper gains at nearly 200 billion won, or $145 million. The Seoul Metropolitan Police Agency's financial crime investigation unit launched the probe in December 2024 and conducted a raid at HYBE's headquarters in Yongsa.
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