BTS boss Fang Shiyue was involved in financial fraud and was transferred for investigation

South Korean entertainment giant HYBE broke out in a major financial scandal! Bang Si-hyeok, the soul of the K-POP band BTS and founder of HYBE, was formally transferred to the Seoul Southern District Prosecutor's Office for investigation by the Seoul police today (3rd) for violating the Capital Market Act on suspicion of "fraudulent and improper stock trading" before the company went public. The South Korean court has also made an emergency ruling to freeze the assets involved in the case, which amounted to 263.1 billion won (approximately NT$600 million) in illegal gains.

According to Korean media reports, after a 21-month investigation, the prosecutors found that those involved included Bang Si-hyuk, management and private equity fund-related personnel. During the preparations for the listing in 2019, five people were suspected of lying to early investors that "there are currently no plans to go public" and induced them to sell their shares to specific private equity funds at low prices. They then quickly listed the company. Bang Sihyeok and others were even suspected of making more than 260 billion won in unjust profits through a private profit-sharing agreement. In addition, the court issued an arrest warrant for HYBE's former chief investment officer (CIO) Kim Jung-dong, who absconded abroad and requested Interpol to issue a red notice.

In the face of severe accusations, HYBE officials and Bang Shihyeok's legal team fully denied any violation of the law, insisting that the transaction contract at that time was completely legal and transparent, and hoped that the judiciary would clarify the truth as soon as possible. However, as prosecutors take over and expand the investigation, the capital storm shaking the K-POP industry may continue to spread.