Bang Si Hyuk’s $300 Million Insider Trading Investigation Ignites New Interest in Limited Shares Distributed to BTS Members During HYBE’s IPO
On May 28 KST, news broke that the Financial Supervisory Service of South Korea is looking into HYBE Labels chairman Bang Si Hyuk for potential insider trading. The investigation centers around claims that Bang misled shareholders in 2019 regarding the company’s intentions to launch an initial public offering (IPO). It is believed he persuaded these shareholders to sell their stock to his private equity fund just before the stock market debut in October 2020, allowing him to secure a contract that guaranteed him 30% of profits generated from HYBE’s public listing. This deal reportedly netted him a staggering 400 billion KRW (approximately $300 million USD).
The Financial Supervisory Service is currently reviewing the case and may escalate it to prosecutors for further action, as the allegations imply Bang Si Hyuk engaged in substantial illegal insider trading. This revelation has fueled speculation and outrage among fans of BTS, whose success has significantly contributed to HYBE’s financial ascendancy.
There’s a financial aspect to consider as well: Bang Si Hyuk had allocated around 68,000 shares to each of the seven BTS members—totally 480,000 shares—prior to the public offering. At that time, the shares held a value of about 64.6 billion KRW, or around $6.7 million for each member. In 2021, bandmates Jin, j-hope, and RM sold portions of their holdings for 4.8 billion KRW, 1.8 billion KRW, and 3.1 billion KRW, respectively. The status of the other members’ shares shifted from public to private beginning in September 2023, leaving questions about who still holds onto their shares.
TRENDINGIf all BTS members continue to retain their allotted stock, estimates suggest they could have profited around 15 billion KRW (around $11 million USD) each, a number that pales in comparison to the massive sums acquired by Bang Si Hyuk. Reports indicate his associates might have received between 100 to 200 billion KRW, exacerbating concerns regarding the distribution of wealth within the company.
The implications of this news have reignited discussions among fans about Bang Si Hyuk’s role as the "father of BTS." Frustration is rising as many feel the wealth generated by their success hasn’t been equitably shared. Fans have taken to social media to express their dismay:
"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."
Criticism continues to mount about the ethics surrounding Bang Si Hyuk’s financial maneuvers and the perceived inequitable treatment of BTS. One fan lamented:
"The members were all still very young in 2020, they were physically and mentally exhausted from their suicidal schedules… Any sense of loyalty they still had toward Bang Si Hyuk must be long gone now."
The sentiment that the extraordinary revenue generated by BTS seems to support individuals unrelated to their success has left many supporters feeling betrayed and angered:
"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."
Calls for accountability are echoing throughout the community, with fans imploring both Bang Si Hyuk and HYBE to reconsider their practices:
"Can they please throw that pig in jail."
"BTS it’s not too late, please get out of there while you still can."
As the investigation unfolds, it remains to be seen how this situation will impact the relationship between BTS and HYBE, and whether the K-Pop industry will confront these deep-rooted issues moving forward.