Bang Si Hyuk, founder and chairman of HYBE and the man credited with turning BTS into a global sensation, is under a travel ban in South Korea as part of an ongoing police investigation.
The allegations, which had been brewing for a while, gained momentum after BTS was fully discharged from the military. The group is planning a full album comeback next year; however, given the current situation and HYBE’s increasing legal issues, the chances of the project being delayed seem inevitable.
Police place travel ban on HYBE founder
The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit confirmed that Bang was barred from leaving the country on August 11, immediately after he returned from a US business trip. The music producer, often known as “Hitman Bang,” is being investigated for suspected violations of the Capital Markets Act, with allegations dating back to 2019.
According to the complaint, ahead of HYBE’s highly anticipated IPO, Bang told investors that there were no immediate plans for a stock market listing, even though preparations were secretly underway. This claim reportedly convinced some shareholders to sell their stakes to a special purpose company (SPC) created by a private equity fund linked to HYBE executives.
According to investigators, SPC later sold the shares once HYBE went public, making massive profits. A shareholder agreement allegedly ensured that Bang personally received about 190 billion won (around USD 138 million.) Bang so far, has maintained his innocence. If proven guilty, the charges could lead to severe penalties, including the possibility of jail time
The investigation began in mid-2024, when police raided the Korea Exchange on June 30 and HYBE’s Yongsan headquarters in Seoul on July 24. Those raids tried to uncover whether Bang and other executives had misled shareholders and benefited illegally from HYBE’s stock listing.
Bang has already been questioned twice as a suspect. The first appearance on September 15, followed by another on September 22, with prosecutors now reviewing whether to formally indict him. South Korea’s financial watchdogs have already forwarded the case to prosecution, underlining the seriousness of the charges.
BTS and their comeback plans
Each BTS member is a major shareholder in HYBE, and while Jin, Jimin, Jungkook, RM, V, Suga, and J-Hope have nothing to do with the ongoing investigations, those financially tied to HYBE may face hurdles in the coming days if the CEO gets indicted, potentially disturbing the company’s work balance. According to the Korea CXO Research Institute, each member owns HYBE shares worth more than 10 billion won (USD 7.8 million). Bang, meanwhile, remains the company’s largest individual shareholder, with an estimated 31.8% stake valued at over USD 2.5 billion.
While BTS’s brand power is strong enough to operate independently, HYBE’s internal struggles could influence the execution of their comeback. So far, there is no confirmed delay in BTS’ comeback plans. But if HYBE remains consumed by legal troubles, promotional activities for BTS could take a hit
There are also concerns about the impact on HYBE’s other groups, including SEVENTEEN, NewJeans, LE SSERAFIM, and ENHYPEN. Advertisers generally prefer to avoid associating with companies under investigation, even if the artists themselves remain untouched by controversy.
HYBE’s official response
HYBE has denied any wrongdoing, claiming that the company followed all relevant laws during the IPO process. In past statements, the firm said that it remains committed to transparency and compliance. HYBE’s stock fell nearly 6% in early July as news of the case surfaced.
Among BTS’s fandom, ARMY, reactions have been mixed. Many fans have voiced their unwavering support for the group, separating the artists from the company’s troubles. Others, however, argue that HYBE must be more transparent about Bang’s situation and how it might affect BTS’s future.