A growing class action lawsuit now threatens the reputation and market standing of K-pop giant HYBE. On July 22, law firm Rojipsa announced plans to take legal action against what it describes as “fraudulent and unfair transactions” involving HYBE and its chairman, Bang Si-hyuk.
Attorney Lee Jungyeop, representing Rojipsa, revealed the firm’s intent to pursue a class action lawsuit against Bang and key executives from affiliated investment funds. He noted that the class action lawsuit will proceed once more than 50 plaintiffs sign up. Lee emphasized that this case qualifies under the Class Action Act and could have serious implications for the capital market.
Moreover, Lee warned that HYBE could face the possibility of delisting, although the probability remains low. Nevertheless, general shareholders may suffer significant financial losses if confidence continues to erode. Lee asserted that Rojipsa aims to promote a fair and transparent investment environment by spearheading this legal effort.
Currently, Bang Si-hyuk faces a criminal referral from financial regulators over allegations of market manipulation. On July 16, the Securities and Futures Commission formally charged Bang and several former executives for violating capital market laws related to unfair trading. Authorities believe they have sufficient evidence to move forward with the prosecution.
Specifically, Bang allegedly misled early investors by claiming HYBE had no plans for an IPO. At the same time, he reportedly sold shares to a private equity fund created by an associate. According to investigators, Bang secretly signed a deal to receive 30 percent of the fund’s capital gains. The profit from that agreement is estimated at nearly 400 billion KRW, or around 290 million USD.
In response, HYBE expressed disappointment with the authorities’ decision. The company claimed that Bang cooperated with investigators and denied seeking personal profit from the IPO process. HYBE stated it would fully cooperate with the investigation to clarify misunderstandings and rebuild trust.
The class action lawsuit represents a major test for corporate accountability in South Korea’s entertainment industry. As the legal case gains momentum, public attention remains fixed on the financial practices of one of K-pop’s most influential companies.
