The ongoing investigation into alleged stock fraud involving Bang Si Hyuk, chairman of HYBE, has drawn renewed public attention following unexpected personnel changes within the prosecution team and what critics describe as unusually slow progress.
Bang Si Hyuk first came under investigation in May 2025 on suspicion of manipulating stocks worth approximately 400 billion won. In July 2025, the Seoul Southern District Prosecutors’ Office’s Joint Financial and Securities Crime Investigation Division 4 — often nicknamed the “Grim Reaper of conglomerates” for its aggressive pursuit of corporate crime — joined the probe.
By early October 2025, Bang was placed under a travel ban. Later that month, he attended an APEC-related event alongside RM of BTS, drawing further media scrutiny. In November 2025, a court approved a request to freeze approximately 156.8 billion won worth of HYBE shares owned by Bang.
However, developments took an unexpected turn in late January 2026 when prosecutors overseeing the case were reassigned during a large-scale reshuffle by the Ministry of Justice. Among those transferred was Prosecutor Choi Sang Hoon, who had requested the seizure of the 156.8 billion won in shares. The personnel changes have fueled concerns that the investigation could face further delays.
Police previously stated in December 2025 that the case was in its final stages. Legal circles had initially predicted a conclusion by the end of 2025. Yet as of now, the probe remains ongoing. BizHankook described the one-year investigation timeline as “unusually slow,” prompting skepticism among netizens about whether meaningful penalties will ultimately be imposed.
Additional controversy surrounds questions of fairness after reports emerged that Bang hired a lawyer who previously served as the direct superior of the prosecutor initially assigned to the case. Some media outlets have suggested that this connection may cast doubt on the impartiality of the proceedings.
According to allegations, Bang Si Hyuk misled shareholders by claiming that HYBE — then operating as Big Hit Entertainment — had no plans to go public, encouraging them to sell shares at lower prices. In reality, the company was reportedly preparing for an initial public offering. Police investigations indicate that Bang received 30% of profits generated from share resale differences, allegedly earning approximately 190 billion won in illicit gains.
He is also accused of signing a separate agreement with a private equity fund to receive 30% of profits from share sales, amounting to around 400 billion won, without disclosing this contract in official securities filings.
As the case stretches beyond earlier expectations, public attention remains fixed on whether authorities will deliver a clear legal conclusion — and whether the extended timeline signals procedural complexity or deeper institutional concerns.
Sources: Netizenbuzz
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