HYBE Labels chairman Bang Si Hyuk has been questioned by South Korea’s Financial Supervisory Service (FSS) as part of an ongoing investigation into allegations of fraudulent and unfair trading under the Capital Markets Act.
According to HYBE Labels, Bang appeared before the FSS toward the end of June, responding to inquiries related to a controversial pre-IPO shareholder agreement. “Bang Si Hyuk answered all questions truthfully and sincerely,” the company said in an official statement.
The inquiry centers around claims that Bang Si Hyuk allegedly profited approximately 400 billion KRW (roughly 294 million USD) through a secret agreement signed with select HYBE shareholders before the company’s initial public offering. The agreement is said to have promised Bang 30% of the shareholders’ post-IPO profits—a deal that was not disclosed in official securities filings submitted to the FSS.
Industry experts have raised concerns over the legality and ethics of such an arrangement, noting that it is highly uncommon for a company’s largest shareholder to receive personal profits from pre-listing agreements that remain undisclosed to regulators.
HYBE previously addressed the issue in November 2024, stating, “It’s true that we provided shareholders with the agreement in question prior to the IPO. We do not believe that there was any violation of laws during the listing process.”
Both the Financial Supervisory Service and the Seoul Metropolitan Police are actively investigating the case. Police previously sought search and seizure warrants for HYBE headquarters in April and June, but both requests were denied by the prosecutor’s office.
The probe marks a significant development for South Korea’s entertainment and business sectors, as HYBE—the powerhouse behind global acts like BTS—continues to face scrutiny over its corporate governance and transparency practices.
