On May 28 KST, serious allegations arose against HYBE Labels chairman Bang Si Hyuk, as South Korea’s Financial Supervisory Service launched an investigation into claims of unfair insider trading. Reports indicate that back in 2019, he misled existing shareholders regarding HYBE’s plans for a public offering, enticing them to sell their shares to his private equity fund shortly before the company aimed for its IPO in October 2020. This maneuver reportedly secured him a staggering 30% of the profits from HYBE’s public listing, ultimately contributing to a windfall of around 400 billion KRW (approximately $300 million USD).
The Financial Supervisory Service is currently examining the details of the case before forwarding it to the prosecutor’s office for further legal scrutiny. This development has reignited discussions among BTS fans, who feel a deep sense of betrayal, as the group played an essential role in HYBE’s substantial growth.
In a notable turn of events, it was confirmed that each member of BTS received about 68,000 shares from Bang Si Hyuk ahead of the company’s public listing—totalling 480,000 shares and valued at approximately 64.6 billion KRW (about $6.7 million USD) per member at the time. In 2021, members Jin, j-hope, and RM sold portions of their shares, earning them substantial amounts of 4.8 billion KRW, 1.8 billion KRW, and 3.1 billion KRW, respectively. However, the current statuses of the remaining members regarding their shares have shifted to private after September 2023.
If they still hold their shares, each BTS member could potentially see profits of about 15 billion KRW (around $11 million USD) based on last year’s stock prices. This amount pales in comparison to Bang Si Hyuk’s earnings and those of other high-ranking individuals associated with him, who reportedly benefited from equity funds that diverted significant profits—some pocketing 100 billion KRW.
These findings have led fans to reconsider Bang Si Hyuk’s role as the "father of BTS." Many are expressing outrage over what they believe is an unjust distribution of profits, highlighting the disparity between the wealth gained by Bang Si Hyuk and his associates and what BTS members received.
Fans have taken to social media to voice their displeasure. Comments include:
"BTS built HYBE from the ground up, but Bang Si Hyuk gave them 9 billion each and made it so that his friends would pocket 100 billion.."
"This is the fundamental problem of the K-Pop industry. It’s essentially an industry that uses young children as pawns to generate huge earnings for greedy old men."
"The members were all still very young in 2020, they were physically and mentally exhausted from their suicidal schedules… there was no way they could have spoken up for themselves in that situation."
"It’s so sad and crazy how all that money BTS made ended up getting handed out to total nobodies who had nothing to do with their success.."
"Can they please throw that pig in jail."
"BTS it’s not too late, please get out of there while you still can."
"I’m going to pray every day that BTS can break out of HYBE safely and HYBE will go bankrupt miserably from it."
"Bang Si Hyuk considers BTS nothing but his little pawns."
"Escape HYBE NOW."
As the investigation unfolds, the K-pop world watches closely, concerned about not just the fate of HYBE, but also the well-being of BTS members caught in this unfolding drama.
