BTS Members Return From the Military Amid HYBE’s Corporate Scandal
As BTS, the internationally renowned K-pop group, prepares to reunite following the completion of their military service, the company behind their rise is facing its deepest crisis yet. South Korea’s Financial Supervisory Service (FSS) is currently investigating HYBE Chairman Bang Si-hyuk for alleged insider trading and violations of the Capital Markets Act. The probe focuses on Bang's potential unlawful profit of over KRW 400 billion during HYBE’s IPO process. If proven guilty, Bang could face severe penalties, including prison sentences ranging from five years to life imprisonment, due to the large-scale illegal gains involved.
It remains to be seen whether this crisis will affect BTS’s upcoming plans or if their reunion will shift attention away from the challenges currently facing HYBE. RM (Kim Namjoon) and V (Kim Taehyung) completed their military services on June 10, followed closely by Jimin (Park Jimin) and Jungkook (Jeon Jungkook) the next day. Suga (Min Yoongi), currently serving as a public service worker, is the final member set to complete his duty on June 21. BTS members Jin (Kim Seokjin) and J-Hope (Jung Hoseok) completed their military service in 2023.
With all seven members soon available for group activities, HYBE has hinted that a full-scale comeback is in the works. At a March shareholders' meeting, HYBE CEO Lee Jae-sang said the company is coordinating with top-tier songwriters and producers, noting that the members would need time to regroup creatively. Even still, the group’s return has already sparked investor optimism, as evident not only in media anticipation but also in HYBE’s stock rebound. On May 29, HYBE shares dropped by 2.51% amid the scandal involving the HYBE Chairman, closing at KRW 272,000 (USD 198), despite the broader KOSPI index rising. But when RM and V were discharged on June 10, investor confidence appeared to return. HYBE stock jumped 2.32% from the previous day, closing at KRW 309,000 (USD 226), its highest point since April 2022. This volatility highlights the fragile balance between market sentiment tied to celebrity capital and long-term institutional trust.
BTS is not just a global music act; they are arguably South Korea’s most influential cultural export. Analysts estimate that the group contributes up to USD 5 billion annually to the national economy, which is nearly half a percent of the country’s GDP. Their global influence spans tourism, cosmetics, language education, and consumer brands. HYBE has built on this success by expanding globally with region-specific groups like KATSEYE and launching HYBE China in anticipation of improved Korea-China cultural relations. These efforts align with South Korea’s broader use of the Hallyu wave as a tool of economic diplomacy and soft power strategy.
The increasing global presence of Korea’s cultural industry, however, complicates domestic regulatory decisions. Political dynamics are evolving, with some parties emphasizing the importance of shielding the cultural economy from disruptions, while others advocate for transparency and equal enforcement across all sectors. Legislative reviews or audits may provide insight into how the government will balance economic interests with regulatory accountability in high-profile industries.
These tensions are especially apparent in the ongoing HYBE investigation. While the FSS’s swift response may reflect efforts to uphold regulatory credibility, questions remain about the consistency of enforcement across sectors. Despite the presence of anti-corruption frameworks, such as the Corruption Investigation Office (CIO) and the Kim Young-ran Act, firms with significant international visibility often face limited regulatory scrutiny.
BTS’s return marks a significant cultural moment. However, it coincides with growing recognition that cultural industries operate within broader political and regulatory frameworks. As South Korea continues to promote its soft power, the HYBE case underscores the complexities of balancing cultural diplomacy with corporate oversight.
This article was written for The Sejong Society of Washington, D.C. and published on June 18, 2025, in the Sejong Society’s newsletter, Sejong Digest 2.0. You can subscribe to the newsletter here: https://thesejongsociety.org/