South Korean police have referred HYBE founder and chairman Bang Si-hyuk to prosecutors over suspected fraudulent trading linked to the company's 2020 IPO, prompting a fierce debate among BTS fans over whether the K-pop executive is facing legitimate accountability or disproportionate scrutiny.
According to reports, police allege Bang and associates misled shareholders in 2019 about plans for a public listing before shares were sold to a private-equity vehicle linked to him.
However, Bang denies wrongdoing, while prosecutors will now decide whether to indict him.
The allegations centre on events in 2019, when HYBE was still known as Big Hit Entertainment. Police allege that existing shareholders were told there were no plans for an initial public offering, encouraging them to sell their shares to a special-purpose vehicle connected to a private-equity fund.
Police say that, around the same period, investors in the fund were given indications that an IPO was planned or likely. After Big Hit's 2020 stock-market listing, the fund allegedly sold the shares at a substantial profit.
Investigators say Bang received a significant portion of the proceeds through a side agreement that gave him about 30 per cent of the fund's profits from the selling shares after the IPO. Police have calculated alleged illicit gains at approximately 263.1 billion won, or around $193 million, although earlier figures were lower.
A court has granted an order freezing the alleged gains.
Four other people, including HYBE-related executives and private-equity officials, have also been referred to prosecutors.
Bang was referred without detention to the Seoul Southern District Prosecutors' Office. Prosecutors had previously rejected police requests for an arrest warrant on at least two occasions, citing insufficient grounds for detention and requesting further investigation.
According to reports, Bang and his legal team have denied wrongdoing and said they have co-operated with investigators, providing evidence and factual explanations. HYBE has also maintained that its listing complied with relevant rules.
The referral does not mean Bang has been found guilty. Prosecutors must now review the investigation and determine whether formal charges should be brought.
The legal developments have divided sections of the ARMY fandom. Some fans argue that the repeated rejection of arrest warrants shows the case remains far from straightforward.
One commenter wrote, 'This year 2 arrest warrants were rejected because of not enough evidence.'
Another said police had spent years investigating without producing sufficient evidence, adding, 'Couldn't even muster an arrest because their evidence is weak asf even after 2 years of investigating.'
Others accused the authorities and media of unfairly targeting Bang. One post described the case as 'a witch hunt', while another called the investigation 'pure harassment'.
