What is the true net worth of Bang Si-hyuk?
Why did he resign from the position of CEO of HYBE?
How did the man who created BTS and the mega successful HYBE become one of the wealthiest figures in the world of K-Pop?
And most importantly what is the Bang Si-hyuk controversy that has shaken the Korean entertainment industry?
From his rise as a hitmaker to allegations of unjustified profits of 190 billion won, Bang Si-hyuk’s rise is nothing short of both notoriety and prosperity. Let’s learn the story behind the headlines.
2. Background of Allegations
(What is the Bang Si-hyuk controversy?)
In 2019, Bang Si-hyuk reportedly told HYBE investors that there were no plans for an IPO. Trusting his words, the investors sold their shares at a lower value.
However, in reality, HYBE was already undergoing preliminary IPO review. After the IPO proceeded, the company’s share value skyrocketed, and Bang allegedly gained 190 billion won.
As a result, he is accused of fraud and unfair trading under the Capital Markets Act. This entire case is now widely known as the “Bang Si-hyuk 190 billion won scandal.”
3. Bang Si-hyuk’s Wealth & Success
(How did Bang Si-hyuk become rich? / How rich is Bang Si-hyuk?)
According to Forbes (2024), Bang Si-hyuk’s net worth is estimated at over $2.5 billion, making him among the wealthiest executives of the K-pop world.
His wealth comes from several sources:
- As the founder of BigHit Entertainment (now known as HYBE), the company behind global superstars BTS, TXT, Seventeen, and New Jeans.
- The 2020 IPO of HYBE made him a billionaire almost overnight.
- An established music producer for over two decades, creating hit songs and managing chart-topping artists.
Bang’s journey is a mixture of talent, business sense, and investment strategies that have led to his success.
4. Why Did Bang Si-hyuk Leave HYBE?
Bang Si-hyuk, founder and CEO of HYBE, resigned his CEO position in 2021 but continues to serve as the Chairman and is still the largest shareholder of HYBE. The main factors he cited for resigning as CEO included wanting to focus on global strategy, music production, and providing support, while allowing fellow executives to take over day-to-day management of the business.
While he resigned CEO, he still is the majority owner of HYBE and is still clearly the most influential individual at the company, defined as the accountability point for overall vision for the organization and the artists in terms of how to best establish a long term career.
5. How the Alleged Scheme Worked
Reportedly, the investors sold their stock to a special-purpose company (SPC) or private equity fund associated with Bang Si-hyuk.
After the IPO, the trading value of HYBE shares increased significantly, and Bang allegedly made around 190 billion won, which encompasses 30% of the price at which the shares were sold.
The police believe this was an illegitimate or illicit way of making profits on what they allege was misrepresentation, and this is the basis for the ongoing criminal investigation.
6. Police Investigations
Bang Si-hyuk was first questioned by the police on September 15, and then for a second time on September 22.
Authorities conducted raids at the Korea Exchange to secure IPO documents, as well as at HYBE’s headquarters.
When asked about a possible travel ban, police refused to comment.
In addition, special investigators from the Financial Supervisory Service (FSS) are also looking into the allegations under the direction of prosecutors.
7. Bang Si-hyuk’s Defense
Bang Si-hyuk denies all charges related to the alleged illicit gains.
He claims that the investors also earned profits before selling their shares, and that his portion of the profit was compensation for taking on risk through put option agreements.
HYBE, meanwhile, stated:
“We regret that the authorities did not accept our explanation, and we will continue to clarify all related matters.”
8. Market & Public Impact
A frequently asked question from fans and investors is, “Who is the richest K-pop CEO?”
To this day, Bang Si-hyuk remains reputed to be the richest CEO in the K-pop industry, and claims his net worth is higher than most of the other Korean music executives. He even claims to have a net worth higher than the founding members of YG, JYP, and SM Entertainment.
The case has also raised questions about investor trust and corporate governance inside the Korean entertainment industry, suggesting how precariously situated some are between great fortune and accountability.
9. Conclusion
The police inquiry regarding Bang Si-hyuk continues without conclusion, and whatever the outcome will be impactful.
to whatever extent it materially impacts his wealth and reputation or the international reputation of HYBE in the entertainment industry.
Meanwhile the case and investigation evolves, the world will continue to pay attention to learn the societal place of K-pop business.
