Police say Bang, the billionaire founder and chairperson of Hybe, misled investors in 2019 by telling them that Hybe had no immediate plans to go public, which led the investors to sell their shares to a private‑equity fund shortly before Hybe launched an initial public offering.

According to the police, the private‑equity fund paid Bang about 200 billion won (US$147 million) in a side deal that promised him 30% of the profits from the post‑IPO stock sale.

Four other people – including Hybe executives and officials from the private‑equity fund – were also referred to prosecutors on Thursday, with the police asking for their indictment as well.

Hybe officials say Bang denies any wrongdoing, and his legal team stated that they will seek a full and transparent resolution through the legal process.

If the allegations are proven, the case could undermine investor confidence in Hybe and similar entertainment firms, and it may also affect the reputation of the K‑pop industry, which relies heavily on global market trust.