K-pop's most powerful man Bang Si-hyuk may be its biggest risk

The possible indictment of Hybe Chairman Bang Si-hyuk for violating capital markets law could send ripples far beyond the company, dealing a significant blow to the broader K-pop industry, according to industry insiders.

Bang is alleged to have misled Hybe's existing investors in 2019 — a year before the company's initial public offering — by falsely claiming there were no IPO plans, while arranging for the company executives to offload their shares through a special-purpose company established by a private equity fund. He reportedly netted some 190 billion won ($129.06 million) in illicit gains. Police and prosecutors have been conducting separate investigations into the case.

While the decision to indict Bang is expected by the second half of the year, industry observers say the ramifications of a potential indictment could extend well beyond Hybe.

"This will not end as a simple owner risk issue," an executive at a major K-pop agency said Monday, speaking on condition of anonymity. "No matter how independently Hybe's subsidiary labels operate, Hybe's standing extends well beyond any individual label — it represents K-pop as a whole on the global stage.

“If the chairman is indicted on charges tied to the very foundation of what made the company what it is today, that undermines the trust and legitimacy of the entire business," the executive said.

Bang is one of the most influential figures in the K-pop industry. As chairman of the world's largest K-pop company, he is credited with discovering and developing BTS, and is considered one of the driving forces behind the global K-pop boom. He has also been at the forefront of exporting K-pop's artist training and development system overseas.

Hybe's international ambitions have grown considerably in recent years. In 2024, it formed a joint venture with Universal Music Group subsidiary Geffen Records to launch the girl group Katseye. In October 2025, Hybe Latin America debuted the five-member boy group Santos Bravos in Mexico.

"The entire K-pop industry would feel the impact," the executive added. "If the head of the biggest company in K-pop is indicted for capital markets violations, people will see the company as treating its artists purely as a means to make money. That would also prompt the government to scrutinize future entertainment company listings far more closely, regardless of their size."

Music critic Lim Hee-yun also predicted that an indictment would weigh on Hybe's stock price and investor sentiment, drawing significant international media coverage and causing reputational damage at home and abroad.

He added that Bang's involvement as executive producer on BTS' fifth studio album "Arirang," released in March, could lead to future constraints on the group's activities.

"If the image of Hybe groups deteriorates, there will be consequences," Lim said. "The world tour got off to strong numbers, but looking at the albums and promotional strategies aimed at the US and English-speaking markets, the momentum seems to be fading faster than expected. The tour appears to be running on fandom loyalty at this point — taken together, the signs for BTS are not particularly encouraging."

"Hybe would have wanted BTS' global influence to keep expanding, but that is not where things stand right now," he added. "If Bang's legal troubles further damage Hybe's image on top of that, the core fanbase will hold, but it could become a barrier to drawing in the casual fans they need to grow. That would inevitably affect BTS' activities going forward."

Meanwhile, Seoul prosecutors on Friday rejected a police request for an arrest warrant for Bang, citing insufficient evidence. The Seoul Police said Monday they intend to continue their supplementary investigation.