Here’s Why South Korean Authorities Have Banned HYBE Founder Bang Si Hyuk From Travelling Abroad
The HYBE chairman and founder has been embroiled in fraud allegations.
Bang Si Hyuk is currently under major controversy following insider trading and financial fraud allegations. Si Hyuk, the founder and chairman of HYBE, home to some of the industry’s biggest K-pop groups like BTS, SEVENTEEN and TXT, has been accused of committing a securities scam. A search raid was recently conducted at HYBE headquarters, and now Bang Si Hyuk has been banned from travelling abroad until further notice. Read on to know more.
Why Did Bang Si Hyuk Get Banned From Travelling Abroad?
Bang Si Hyuk and HYBE are currently under investigation for allegedly violating South Korea’s Capital Markets Act. According to media reports, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency on October 1 restricted the music mogul from leaving the country as a part of their ongoing investigation.
The HYBE founder is accused of misleading company shareholders in 2019 before its initial public offering (IPO). The police allege that Bang Si Hyuk did not inform the shareholders about the company’s plan to go public, thereby inducing them to sell their shares to a special purpose company (SPC) created by a private equity fund established by HYBE executives.
They also believe that through this move, he ended up gaining over 30% of the profits made from the sale as HYBE’s largest shareholder. He is said to have earned over 190 billion KRW from this deal.
Additionally, a surprise raid was conducted at HYBE’s headquarters in July. The operation was launched as an initiative by Korea’s National Tax Service, which announced a targeted probe into 27 South Korean individuals and corporations. Among the listed corporations, HYBE ranked first in the entertainment sector of the list.
The company has, however, denied all allegations of wrongdoing and stated that it has complied with all relevant laws and regulations. Since the investigation began into the company this year in July, Bang has undergone two rounds of questioning on September 15 and 22. Authorities report investigation is currently ongoing, with more suspects and witnesses being called for questioning.
Source: Allkpop
First Published: October 01, 2025 1:30 PM
