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On May 28 KST, it was announced that South Korea’s Financial Supervisory Service is conducting an investigation into HYBE Labels chairman Bang Si Hyuk for allegations of unfair insider trading.
Reports suggest that Bang Si Hyuk misled current shareholders in 2019 regarding HYBE’s plans to go public. He allegedly persuaded shareholders to sell their shares to his own private equity fund management company, just ahead of HYBE’s IPO in October 2020. At that time, Bang Si Hyuk had signed a contract with the equity fund, ensuring he would receive 30% of the profits from HYBE’s public listing. Eventually, this contract reportedly netted him 400 billion KRW (~ $300 million USD).
The Financial Supervisory Service indicated that Bang Si Hyuk may have engaged in illegal insider trading by misleading existing shareholders. The agency is currently reviewing the case prior to forwarding it to the prosecutor’s office for a formal investigation.
This news has reignited concerns and anger among BTS fans, the artists primarily responsible for HYBE’s significant growth.
Earlier, it was confirmed that Bang Si Hyuk allocated approximately 68,000 shares (a total of 480,000) to each of the 7 BTS members ahead of HYBE’s public listing in 2020. At that time, these shares were valued at around 64.6 billion KRW (9.2 billion KRW (~ $6.7 million USD) per member). In 2021, members Jin, j-hope, and RM sold a portion of their shares, earning 4.8 billion KRW, 1.8 billion KRW, and 3.1 billion KRW, respectively. At present, it is unclear whether the remaining BTS members still hold their shares in HYBE, as their status changed from public to private shareholders after September 2023.
If the BTS members still retain their shares, based on last year’s stock prices, each member could potentially have made a profit of 15 billion KRW (~ $11 million USD) from the shares distributed by Bang Si Hyuk. These figures starkly contrast with Bang Si Hyuk’s profit of 400 billion KRW and those of other key figures associated with him, some of whom reportedly profited 200 billion KRW and 100 billion KRW.
Fans are currently questioning Bang Si Hyuk’s actions as the “father of BTS” after revelations of potential “unfair profit distribution” within HYBE. Many express frustration over the notion that Bang Si Hyuk’s unidentified associates could reap large profits while the BTS members received meager amounts.
Some netizens remarked,
“BTS built HYBE from the ground up, but Bang Si Hyuk gave them 9 billion each and made it so that his friends pocketed 100 billion.”
“This is the fundamental issue within the K-Pop industry—it’s an industry that exploits young artists to generate immense revenue for greedy older individuals.”
“The members were still quite young in 2020, dealing with exhausting schedules, pressured by fans to stay with HYBE… they couldn’t advocate for themselves. To find out they received so little while others made 100 billion won… any remaining loyalty towards Bang Si Hyuk must be gone by now.”
“It’s heartbreaking and unbelievable how all that money BTS earned ended up with total strangers who contributed nothing to their success.”
“Can they please put that pig behind bars.”
“BTS, it’s not too late; please escape while you can.”
“I will pray every day that BTS can break free from HYBE, and that HYBE faces disastrous consequences as a result.”
“Bang Si Hyuk treats BTS as mere pawns.”
“Leave HYBE NOW.”
SEE ALSO: Prosecutors raid HYBE headquarters amid insider trading investigation
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