Bang Si Hyuk Under Investigation as HYBE Faces KATSEYE Controversy and Public Outcry

Truth and doubt collide in the spotlight's glare,
Voices rise — some seek justice, some defend.
K-pop’s empire stands trial in the court of public eyes.

Bang Si-hyuk, the founder and Chairman of HYBE, long celebrated as the driving force behind BTS's global success, is now facing the most critical moment of his career. On the morning of August 6 (KST), he broke his silence and issued a public apology to all HYBE staff via internal email, addressing the legal investigation surrounding allegations of market manipulation during the company's IPO process.

“I can only imagine the confusion and concern felt by many of you who have always been proud to be part of HYBE,” he wrote. “As the founder and leader, I feel deeply responsible and sincerely apologize.”

Bang acknowledged that his recent absence from Korea was not an act of evasion but rather due to ongoing music projects and the company's global expansion. However, he has now promised to return to Korea soon to fully cooperate with the ongoing investigation.

“I trust that the truth will come to light, and I will humbly await the judgment of the authorities,” he stated.

As a fellow creative, he expressed a profound sense of guilt, knowing that his personal issue could disrupt the focus of HYBE's artists. He emphasized that he does not want this case to hinder the creativity, passion, and perseverance of the talents who have driven the company’s growth.

“I will not allow my personal matters to become an obstacle for you. Like every HYBE member, I will continue to stand by our founding spirit—supporting the growth of the music industry with reflection and humility.”

In his message, Bang also expressed sincere gratitude to the staff and creators who continue to work with dedication under pressure. He highlighted that HYBE’s global achievements are not the result of individual effort, but the collective strength of a solid and committed team.

Amid IPO Investigation and KATSEYE Song Controversy, Public Reaction is Deeply Divided

The ongoing investigation into Bang Si-hyuk centers around allegations that he misled early investors in 2019 by stating HYBE had no plans for an IPO—only to later sell shares to a shell company (SPC) linked to his private equity fund. After HYBE officially went public in October 2020, Bang allegedly gained nearly 200 billion won in unlawful profits.

Authorities—including the Financial Services Commission, the Prosecutors’ Office, and the National Tax Service—have taken firm action, including a raid on HYBE's headquarters and a special audit. This case doesn’t just affect public investors, but also the National Pension Service (NPS), which holds 7.5% of HYBE's shares.

In the midst of the spotlight, Instagram account @koreajoongangdaily_official posted about Bang Si-hyuk’s journey as the founder of HYBE and the visionary behind BTS, now under criminal investigation.

Public comments quickly flooded in, revealing a mix of hope, empathy, and criticism:

“I just hope the truth—whatever the real truth is—comes to light. And if this is yet another evil attempt to hurt HYBE, like many others, I sincerely hope everyone responsible gets taken down.”

“One thing about rising up anywhere in the world is that there will always be people waiting to pull you back down. You have to be perfect—can’t even breathe too loud. HYBE is clearly blowing up nationally. If he did anything wrong, pay the fine and move on. K-pop is in its prime and doesn’t need this.”

“Everyone knew HYBE was going public.”

“His former employees at the time become BTS boys themselves. They became the true owners of their identity. YES.”

While the IPO scandal was still fresh, a new wave of backlash emerged. On August 1, Instagram account @k_wavesite reposted an article from Allkpop reporting a fresh controversy involving Bang Si-hyuk as the lead producer of the song “Gnarly” by rookie girl group KATSEYE. The track came under fire after being accused of including adult video audio samples—an allegation confirmed and even proudly acknowledged by producer #PinkSlip.

Industry experts claim it would be impossible for a senior producer like Bang not to be aware of or approve the final version of the track. The existence of a “Clean Edit” version further reinforces the assumption that the sample’s use was intentional. The outrage intensified because one of KATSEYE’s members, Yoonchae, is underage—making this not just an ethical misstep, but a potentially serious moral violation.

This sparked another flood of public comments:

“Finally in serious trouble. I remember how cold he was to Sunghoon during his debut while being happy for the others. Now look—Sunghoon’s the group visual and has the most brand deals. But Bang usually escapes trouble anyway.”

“Let’s see what comes first... Bang Si-hyuk going to jail or BTS making a comeback 😂😂.”

“Not a KATSEYE hater, but the song ‘Gnarly’ really crossed the line, especially since they performed it at a kids’ event 😢.”

“He admitted it in a statement. Within agencies, groups or personas are curated by the agency itself. KATSEYE seems to have been built around controversy. Two members even admitted to being queer as part of their strategy to attract LGBT support—but were still criticized by Knetz. Now here comes another scandal.”

“This group is getting bolder with time. They refuse to follow the usual K-pop idol moral standards. It’s easy for them to come out, but when criticized, they suddenly claim they’re not ‘K-pop’—yet they still promote on Inkigayo. And now Daniella’s supposedly joining ISAC too. It’s wild 😂.”

The combination of a major legal probe and an ethical crisis has caused the public to question Bang Si-hyuk’s leadership and HYBE's identity as a once-innovative and pristine agency. Now, the public waits for one thing: justice that is clear, transparent, and consistent.

In the midst of intensifying debates, only legal process and time will reveal the full truth. Whether this is a case of serious misconduct, strategic sabotage—or a mix of both—justice remains the only path to redemption, both for Bang Si-hyuk and the future of HYBE.

Sources: Allkpop, Chosun, Daum, Koreajoongangdaily