HYBE Responds to Bang Si-hyuk Fraud Allegations: 'We Complied with All Laws'

By Yoona, Lee

Jul 09, 2025

HYBE Responds to Bang Si-hyuk Fraud Allegations 'We Complied with All Laws'



The financial authorities will file a complaint with the prosecution against Bang Si-hyuk, chairman of HYBE's board of directors, on charges of stock market fraud. Before listing Hive, he allegedly tricked an early investor into selling stocks that he had no plans to list, and then made a listing profit of 200 billion won.

According to related industries on the 9th, the Capital Market Investigation Review Committee, a deliberation body of the Securities and Futures Commission under the Financial Services Commission, decided to file a complaint with the prosecution at a meeting on the 7th of this month. Accordingly, the Securities and Futures Commission will finalize the agenda at a regular meeting on the 16th. The prevailing view is that the Securities and Futures Commission is unlikely to overturn the decision.

Chairman Bang signed a contract with a private equity fund (PEF) established by an acquaintance in 2020 before the listing of Hive to take over 30% of the profits from the sale of the stake. The private equity fund bought Hive shares from existing investors such as institutions and venture capital (VC). At that time, Chairman Bang's side was said to have been largely influenced by the fact that it was impossible to list to existing investors.




However, Hive entered the KOSPI market in October 2020. After listing, the private equity fund reportedly made profits by selling its Hive shares, and Chairman Bang also reportedly received about 400 billion won in settlement. The contract between Chairman Bang and the private equity fund was omitted during the listing review of the Korea Exchange and the submission of the Financial Supervisory Service's securities report.

Financial authorities suspect that Chairman Bang mobilized private equity funds to bypass protectionary Jesus, which restricts the sale of shares for a certain period of time after listing.

In response, Hive responded "I will make a sincere explanation." he said.




On the same day, Hive made an official statement regarding the financial authorities' policy to file a complaint with the prosecution, saying, `We are sorry for causing concern with the news about our listing process.'

In addition, "We are actively cooperating with the financial authorities and the police to confirm the facts by submitting relevant data along with detailed explanations on the issues currently being raised."And even if it takes some time, I will faithfully explain that the listing was carried out in compliance with laws and regulations at the time."," he added.

Hive is in a position to clarify that it was a legitimate listing, but if the prosecution proceeds to indict him in the future, 'Judicial Risk' will be inevitable.






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