What happens when the man behind BTS’s global success finds himself trapped in a scandal?
Can HYBE’s empire survive if its chairman, Bang Si-hyuk, is accused of pocketing ₩190 billion in unfair profits?
And most importantly — will this controversy impact BTS’s highly anticipated comeback and HYBE’s reputation worldwide?
On October 1, South Korean police officially confirmed that HYBE Chairman Bang Si-hyuk has been banned from leaving the country. The travel restriction, quietly enforced on August 11, 2025, is directly tied to an ongoing stock fraud probe worth an estimated ₩190 billion (~$140M). With HYBE standing as one of the biggest names in the global K-pop industry, the case is already sending shockwaves across fans and investors alike.
Let’s explore the details behind this unfolding controversy.
What Happened? (Background Recap)
The origins of this scandal trace back to 2019, when Bang Si-hyuk allegedly misled investors by claiming that HYBE had no plans for an IPO. Believing him, several investors sold off their shares — not knowing that a private equity fund and a special purpose company (SPC), connected to former HYBE executives, was ready to acquire them.
When HYBE eventually went public, those very shares were resold at a massive profit, raising serious questions about the legality of the entire transaction. Investigators claim that Bang Si-hyuk had a prior agreement in place, allowing him to personally pocket nearly ₩190 billion (~$140M) from the scheme.
For a deeper look into the origins of this controversy, check out our earlier detailed reports:
Police Investigation & Travel Ban
The investigation into Bang Si-hyuk has been anything but quiet. Police already conducted raids at HYBE’s headquarters and even secured key documents from the Korea Exchange.
Bang himself was summoned twice for questioning — first on September 15 and again on September 22 — as part of the ongoing probe led by the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit.
Interestingly, the travel restriction was enforced much earlier, on August 11, 2025, right after Bang returned from a U.S. trip. Authorities quietly barred him from leaving South Korea to ensure he faces the legal process and doesn’t flee the country during this high-stakes case.
For HYBE and the K-pop industry, this travel ban isn’t just procedural — it signals that the investigation is entering a very serious phase.
HYBE’s Response
Bang Si-hyuk has denied all allegations, maintaining that HYBE’s IPO process was fully legal and compliant. He insists that no fraud or prior agreements took place and that the accusations misrepresent how the company went public.
HYBE, meanwhile, released an official statement saying the company has always operated within the law and remains committed to transparency throughout the investigation.
Still, the controversy has shaken the market. HYBE’s stock has seen noticeable fluctuations, with investors closely watching updates as concerns grow over the potential long-term impact on the company’s reputation and stability.
Impact on BTS & HYBE Artists
This scandal isn’t just about Bang Si-hyuk — it has ripple effects across HYBE’s biggest stars. Each BTS member reportedly owns around ₩10 billion worth of HYBE shares, which means their personal finances are indirectly tied to the company’s performance.
While BTS themselves are not connected to the allegations, the controversy could still complicate their comeback planning, promotions, and investor confidence. Any uncertainty around HYBE’s leadership inevitably spills over to the group that built its global reputation.
It’s not just BTS — other HYBE acts like SEVENTEEN, NewJeans, LE SSERAFIM, and ENHYPEN could also face indirect fallout. Advertisers and brand partners may hesitate to collaborate with a company currently under criminal investigation, creating challenges for group activities and promotions.
In short, even if the artists remain untouched by the scandal, their careers could feel the aftershocks of HYBE’s leadership crisis.
Netizen & Fan Reactions
The news of Bang Si-hyuk’s travel ban has sparked a wave of reactions online. Many Korean netizens have expressed strong support for the decision, commenting things like “Justice!” and “As they should!”, showing approval of authorities taking action.
Among the BTS fandom (ARMY), opinions are more mixed. Some fans are separating the group from HYBE’s issues, continuing to support BTS regardless of the scandal. Others are calling for greater transparency from HYBE, worried about how the chairman’s legal troubles could affect the group’s future activities.
The controversy is also creating a buzz among international fans, with concerns over possible delays to BTS’s comeback and the broader impact on HYBE’s global operations.
What’s Next?
The inquiry into Bang Si-hyuk remains active, with prosecutors presently considering whether to file a formal indictment against the HYBE chairman. If convicted, Si-hyuk might face severe sanctions under the Capital Markets Act, which range from five years to life imprisonment.
Prosecutors anticipate extended questioning of additional executives and review of HYBE’s financial contracts to gain a fuller picture of the alleged misconduct.
In addition to the legal ramifications, HYBE faces international reputation and investor confidence repercussions. With BTS and other major artists, as well as its services, under its umbrella, the ramifications of the investigation could have broader implications for the K-Pop industry.
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Conclusion
The travel restriction placed on Bang Si-hyuk represents a turning point within HYBE’s ongoing scandal. While the chairman is enduring significant scrutiny as he deals with legal matters, both the future of HYBE alongside BTS’s colossal comeback in 2025, might be impacted by the progression of this investigation.
As the authorities continue the probe, fans eagerly await the outcome. While the investigation remains fluid and unpredictable, stay tuned for more updates in this precarious situation that could ultimately change the course of one of K-pop’s biggest entertainment empires.
