"Illicit Gains Allegations: Bang Si-hyuk Continues Stock Donations to HYBE... Why?"

[HYBE’s Owner Risk in the Spotlight]

Bang Si-hyuk, Chairman of HYBE, who is currently facing possible arrest, will donate approximately 160,000 shares he owns in HYBE to the company over the course of one month starting next month. As this follows his donation of 710,000 shares on the 31st of last month, some point out that this move may be in response to legal risks.

Bang Si-hyuk, Chairman of HYBE, appears as a suspect at the Financial Crime Investigation Unit of Seoul Metropolitan Police Agency in Mapo-gu, Seoul on the 15th, responding to reporters' questions. 2025.9.15. Photo by Yonhap News

According to the Financial Supervisory Service's electronic disclosure system on April 22, Chairman Bang will donate 160,738 common shares to HYBE free of charge between May 18 and June 16. Based on the closing price of the previous trading day, when HYBE’s stock price fell after police sought an arrest warrant for Bang on charges of making approximately KRW 190 billion in illicit gains, the value of these shares is about KRW 40 billion. Once the transaction is completed, Bang’s ownership stake will decrease slightly from 28.86% to 28.48%. Just three weeks ago, Bang also donated 711,534 shares to HYBE and one other individual.

HYBE explained that Chairman Bang is donating a portion of his personal shares to the company to help fund employee performance incentives and other purposes. However, as the donation comes amid suspicions that he profited unfairly during the company’s past IPO process, multiple interpretations are possible. Some believe that this is an attempt to quell public criticism by emphasizing responsible management. The recent series of stock donations by Bang has also taken place after the court froze approximately KRW 156.8 billion worth of his shares (forfeiture preservation) at the end of last year.

Chairman Bang has also demonstrated responsible management by setting his base salary at a low level. Instead, he has secured substantial compensation through bonuses and dividends. In 2024, his base salary was KRW 0, but he received a bonus of KRW 980 million and cash dividends worth about KRW 9.2 billion. The bonus is a reward for management performance in 2023. Last year, his base salary was also KRW 0, and because his total compensation did not exceed KRW 500 million, he was not included in the public disclosure list. However, as HYBE’s stock price rose, his income increased as he received more than KRW 6.5 billion in year-end dividends despite a sharp decline in dividends per share.

As of the beginning of this year, Chairman Bang’s stake was valued at over KRW 4 trillion, making him the wealthiest figure in Korea’s entertainment industry. Even as HYBE has faced legal disputes with former ADOR CEO Min Hee-jin and NewJeans, Bang’s wealth has continued to grow. His assets increased from over KRW 2 trillion in 2024 to more than KRW 3.5 trillion last year, and surpassed KRW 4 trillion this year.

Meanwhile, Chairman Bang is suspected of misleading investors during HYBE’s (formerly Big Hit Entertainment) 2019 IPO process by claiming that there were no plans for a stock market listing, which led certain private equity funds to sell their stakes. He is accused of making nearly KRW 200 billion in illicit gains after the IPO according to a confidential prearranged agreement. Bang maintains that he complied with all relevant laws and regulations at the time and that there are no legal issues.

Despite HYBE’s claims, both the prosecution and the police are continuing their investigation. The police began their own investigation at the end of 2024 based on internal intelligence, while the prosecution launched its probe following a complaint from the Securities and Futures Commission under the Financial Services Commission. Attention is now focused on whether the prosecution will request a detention warrant from the court following the police’s application. Even if a warrant is requested, a warrant review must be conducted, and if Bang is detained, he can file a request for a warrant validity review.

This content was produced with the assistance of AI translation services.