While his stars are thriving in the music scene, things aren’t looking so good for HYBE founder Bang Sihyuk (방시혁). Amid a police investigation for fraud, the public figure is now banned from travelling outside of South Korea.
On 1st October 2025 (Wednesday), news outlet MBM reported that the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit has banned the HYBE label chairman from leaving South Korea. This move comes amid an investigation into the 53-year-old for allegedly violating the Capital Markets Act for deceiving existing HYBE investors about the company’s IPO plans to make billions in profit.
Since earlier this year, the company and its chairman have been the target of a federal investigation over fraudulent and illegal transactions during the company’s initial public offering (IPO) process in 2019. Bang Sihyuk is accused of misleading investors, claiming the company had no plans for an IPO and then selling the investors’ shares to a segregated portfolio company (SPC) established by a private equity funded by HYBE executives.
However, HYBE would then begin an IPO, and the SPC would subsequently sell its shares. Bang Sihyuk reportedly benefited from the arrangement, allegedly receiving approximately KRW 190 billion (approximately RM596 million) in illicit profits. The Capital Market Act prohibits acts relating to financial investment products that seek financial gain through lies or fraudulent schemes. If found guilty, violators are subject to imprisonment for five years to life.
As of now, Bang Sihyuk is still under investigation along with other individuals supposedly involved in the case. However, netizens have reacted to his travel ban, supporting the move. Some also quipped that the HYBE founder can no longer flee to the United States to avoid investigations. While others questioned the severity of the case to warrant a travel ban, many hoped for justice to be served.
It’s also worth noting that HYBE offices were raided as part of investigations, so it’s unclear whether the labels and artists under the multinational corporation would be affected. Whatever happens, we wish the authorities a smooth investigation. What are your thoughts on this?
Sources: Korea JoongAng Daily, Malay Mail
