South Korean authorities continue to investigate HYBE founder and chairman Bang Si-hyuk over alleged violations of the Capital Markets Act tied to the company’s 2020 IPO, specifically claims that he misled investors in 2019 about listing plans and profited through undisclosed profit-sharing arrangements with private equity funds. Police sought an arrest warrant in April 2026 citing roughly 200 billion won in illicit gains, but prosecutors rejected the request twice—most recently in early May—citing insufficient evidence and ordering further probes. Bang, who has been subject to an exit ban and asset freezes since 2025, denies wrongdoing and has stated he is cooperating. With the case still in active supplementary investigation as of mid-June 2026, traders price a modest edge toward formal charges materializing before year-end, though prosecutorial skepticism and evidentiary hurdles keep the outcome contested.