HYBE was caught in confusion over the return of BTS as a full group due to the excitement and simultaneously the owner risk associated with Chairman Bang Si-hyuk.
BTS, which plays a key role in HYBE's current growth with a market capitalization of 11.3 trillion won, will return as a full group next spring, ending its military hiatus after four years.
However, Bang Si-hyuk, the owner of HYBE that nurtured BTS, faced the worst situation due to allegations of stock irregularities. Bang currently holds 31.57% of HYBE's equity as its largest shareholder.
The HYBE headquarters in Yongsan, Seoul, was bustling with overseas ARMY (BTS's fandom) welcoming the group's return on the 10th. A small truck sent by overseas ARMY was noticeable on the road right in front of the headquarters. BTS's songs were playing from this truck, which had the phrase "We have returned" written on it. On this day, fans of various nationalities, including those from the United States, Mexico, and Vietnam, visited in front of the HYBE headquarters.
A female fan who said she came from Canada was busy taking selfies in front of the HYBE headquarters. She noted, "After taking photos, I will look for a cafe nearby with BTS photos." When asked about the stock irregularities related to Bang, she said, "I don’t know much about it." A male fan from Mexico also mentioned, "I don't know who Bang Si-hyuk is."
Currently, HYBE is filled with anticipation for BTS's return. Last year, following members Jin and J-Hope, last month RM, V, Jungkook, and Jimin completed their military service, and Suga, who was in alternative service, was also discharged. On the 1st, BTS announced their return by revealing a new album on the fan platform Weverse, followed by a world tour, signaling their comeback. If everything goes as planned, this will mark BTS’s first full group activity in four years since 2022.
HYBE's revenue growth attributed to BTS's activities is also anticipated. In particular, HYBE is looking to recover from a significant drop in operating profit last year. HYBE recorded revenue of 2.2556 trillion won and an operating profit of 184 billion won in 2024. Compared to 2023, revenue increased by 3.6%, but operating profit decreased by 37.8%.
However, inside HYBE, there appears to be turmoil due to owner risk stemming from Bang's stock irregularities. Bang is under suspicion of deceiving existing investors by claiming there were no plans for an initial public offering (IPO) before HYBE's listing in 2019, leading them to sell their equity to private equity funds (PEF) established by acquaintances.
It is reported that he struck a deal to receive 30% of the profits from the sale of equity related to the private equity funds and listings, reportedly pocketing about 200 billion won in listing profits. Financial authorities are said to be preparing to report Bang to prosecutors on charges of stock fraud.
On the 9th, HYBE issued an official statement. HYBE stated, "We regret the concerns caused by news related to the listing process," and noted, "We are actively cooperating with financial authorities and police in confirming the facts regarding the issues currently raised." It emphasized, "We will clarify that the listing was conducted in compliance with laws and regulations at that time."
Lee Dae-sun, the representative lawyer of the law firm Mirero, stated, "Bang Si-hyuk appears to have violated the securities law, which prohibits major shareholders from selling shares for at least six months after listing."
He said, "If existing investors were made to sell their equity to private equity funds and Bang Si-hyuk profited from this by earning 200 billion won, then it can be seen that he effectively sold his equity and profited." This lawyer also mentioned, "It is expected that there will be some kind of legal battle involving Bang in the future," expressing concerns about HYBE's owner risk.
Cultural experts are keeping a close eye on the situation where Bang's owner risk is spreading among overseas fans.
Shim Young-seob, a critic, noted, "ARMY likes BTS, but that doesn’t mean they like Bang Si-hyuk. However, if the owner risk deepens and the global ARMY becomes aware of it, it’s unpredictable what demands they might have for HYBE and what negative effects it could have on HYBE."