HYBE Chairman Bang Si-hyuk Under Increased Investigation Over IPO Allegations; Korea Exchange Raided, Case to Be Referred to Prosecutors

The South Korean police have expanded their investigation into HYBE’s 2020 initial public offering (IPO)-related allegations. On June 30, they raided the Korea Exchange’s Yeouido office and seized documents related to the listing review process. The investigation team is probing Chairman Bang Si-hyuk for violations of the Capital Market Act. The allegations claim that during the 2019 listing preparation phase, Bang lured specific investors and private equity funds to bypass HYBE’s standard funding procedures. According to officials, Bang received funds amounting to 4 billion won (approximately $293 million) or 30% of the investment returns from these funds but failed to disclose this information in required securities filings. HYBE went public on the KOSPI market in October 2020, raising 96.26 billion won (about $760 million). At that time, Bang’s 36.6% stake was valued at 3.14 trillion won (roughly $2.3 billion), ranking him sixth on South Korea’s list of richest individuals. Based on the evidence collected, the police are preparing to refer the case to prosecutors. Following the news of the investigation, HYBE’s stock price dropped by over 5% during trading hours and remained at its lowest level for more than a month.

Meanwhile, technological innovation is also advancing within the K-POP industry. The emergence of AI idols not only demonstrates the technical future of K-POP but also triggers structural changes in the industry. Various AI idols such as MAVE:, PLAVE, Nævis, and AN7 have taken to the stage, with each project attempting to redefine the boundaries between technology and humanity. In particular, the ethical questions raised by AI idols are noteworthy. Groups like MAVE: are entirely virtual, capable of accurately simulating fans’ emotions but unable to engage in real interactions. In contrast, PLAVE operates on a hybrid model using the voices and motion capture of real people, striving to restore emotional reciprocity through real-time live broadcasts and communication with fans. Such technological experiments reveal how thoroughly K-POP views emotional dynamics as “plannable elements.”

The infrastructure supporting K-POP’s global growth is also being strengthened. Choi Jae-yoon, CEO of Hello82—the only K-POP label in the United States—was recently named to Billboard’s “2025 Independent Power Players” list. Hello82 has assisted groups such as ATEEZ and P1Harmony in entering the U.S. market and has produced five albums that reached the top 20 on the “Billboard 200” chart in the past year, including two albums that topped the chart. Choi emphasizes a “fan-first” strategy rather than an “artist-first” approach, noting that the U.S. music industry is increasingly studying and adopting K-POP’s fan-based business model. As K-POP continues to achieve global success, it faces two concurrent challenges: issues related to executive transparency and technological innovation.