According to the Korea Herald, as BTS are getting closer to their long-awaited comeback, their management company - HYBE - is facing a state of chaos at the highest level.
HYBE Chairman Bang Si Hyuk is being investigated by the Financial Supervisory Board of Korea (FSS) for allegedly fraudulent transactions. The incident caused concern for fans before the group's reunion.
According to the report, FSS has collected evidence that in 2019, Bang Si Hyuk lied to investors that HYBE (then Big Hit) had no plans to IPO ( publicly listed stocks) to encourage them to sell shares to a private investment fund set up by his acquaintances.
Chairman Bang Si Hyuk was accused of signing contracts with these funds to share 30% of investment profits and earn about 400 billion won, after HYBE successfully launched its stock in 2020.
The agreements were not clearly stated in HYBE's securities disclosure documents when listed, which could constitute a violation of South Korea's capital market laws.
In addition, a separate police investigation is also underway. It is reported that the Financial Crime Investigation Unit under the Seoul Capital Police Department has filed a request for a search warrant against HYBE and the parties involved in the allegations of Chairman Bang Si Hyuk.
Although controversy has originated from HYBE's financial activities, fans are still concerned about its potential impact on BTS's comeback as a full group.
"I don't understand why someone who should have focused on leading the company and supporting BTS from behind is caught up in controversy. With all 7 members preparing for their comebacks, I'm worried that this could cause unnecessary obstacles," said a BTS fan.
The 7-member band is expected to reunite at the end of this year, when all members complete their mandatory military service in June.
BTS's oldest member, Jin, was first discharged from the military in June last year, followed by J-Hope in October of the same year. RM and V will be discharged from the army on June 10, followed by Jungkook and Jimin on June 11. Suga will be the last member to complete his military service on June 21.
Although BTS's official comeback date has not been confirmed, HYBE has repeatedly stated that the group's new content and performances are being carried out.
In March, HYBE CEO Park Ji Won said at a shareholders' meeting that the company is negotiating with leading musicians and producers, and that BTS members will need time to gather after completing their duties.
An entertainment industry CEO said that the scandal involving Chairman Bang Si Hyuk is unlikely to harm BTS' comeback plans.
"The issue focuses on Bang Si Hyuk's personal interests and is not directly related to BTS. HYBE operates under a multi-brand system and BTS is fully capable of returning independent.
Each member has strengthened their global presence through their solo careers. Although HYBE's reputation may be affected, I don't see it slowing down BTS's comeback, or affecting their promotional activities.
This can certainly leave a mark on the company's records. But fans will not be silent, even if Bang Si Hyuk is overthrown, they will not let that distract BTS's activities," the official said.
