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…
Seoul police have referred HYBE chairman Ban Si-hyuk to prosecutors over allegations that he misled investors in the entertainment company's initial public offering. According to prosecutors, Ban allegedly told shareholders in 2019, when the company was known as BigHit Music, that there were no plans for an IPO, prompting them to sell their shares to a special purpose company controlled by a private equity firm tied to him.
The fund later sold those shares after BigHit went public in 2020, and police believe Ban collected around 30 percent of the proceeds through an undisclosed arrangement. Financial authorities estimate Ban's improper gains at nearly 200 billion won, or $145 million. The case was opened by Seoul Metropolitan Police Agency's financial crime investigation unit in December 2024, with a raid on HYBE's Yongsa headquarters.
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