South Korean police referred HYBE chairman Bang Si-hyuk and four associates to prosecutors on September 3, 2026, on charges of fraudulent trading under the Capital Markets Act tied to alleged misleading statements about the company’s 2020 IPO plans. Investigators claim the group induced existing shareholders to sell stakes to a linked private equity fund before the listing, generating 263.1 billion won in preserved illicit gains. Prosecutors have not yet indicted anyone and previously rejected two police requests for Bang’s arrest, citing insufficient grounds. The referral follows a 21-month probe that included asset freezes but no detention. Traders appear to view formal charging this year as uncertain given the prosecutors’ prior caution and their discretion to seek additional investigation or drop the matter.