**South Korean police referred HYBE Chairman Bang Si-hyuk and four associates to prosecutors on September 3, 2026, on charges of fraudulent unfair trading under the Capital Markets Act tied to the company’s 2020 IPO.** Investigators allege that in 2019 Bang and others misled existing shareholders about listing plans to induce share sales to a linked private equity fund, generating roughly 263.1 billion won in improper gains (with Bang reportedly linked to about 150–157 billion won of that total). A court has preserved the full amount for potential forfeiture. Prosecutors have not yet decided on indictment; they previously rejected two police arrest-warrant requests in April and May 2026, citing insufficient grounds and ordering further investigation. Bang and HYBE maintain that the listing complied with all applicable rules. The recent referral advances the case but leaves formal charging dependent on prosecutorial review, possible additional probes, or a decision to decline indictment—factors that shape the current trader consensus favoring no formal charges by year-end.