A defrauded investors of over 1.3 billion won using the BTS brand in 2021.
The court rejected A's appeal and upheld the original ruling.
On April 15, 2026, a composer in his 50s was sentenced to imprisonment for defrauding investors by pretending to initiate a business related to BTS. The Suwon High Court's criminal division upheld the initial six-year sentence, rejecting the appeal of the defendant, identified as A. In 2021, A deceived investors by claiming he would produce and sell BTS-branded jeans, illegally obtaining approximately 750 million won. Additionally, he solicited another 550 million won under the pretense of needing lobbying funds. Investigations revealed A falsely claimed to have connections with HYBE chairman Bang Si-hyuk, but no actual business negotiations took place. The first trial court found that A had exploited his network to mislead victims while showing no remorse afterward, which contributed to its classification of his actions as having poor moral quality. Nonetheless, the court acknowledged that some of the money had been allocated to actual business entities, which influenced the sentencing. The appellate court emphasized that the original ruling was justified and that the sentencing fell within a rational range.
This case illustrates how the immense brand of BTS can be exploited for unethical gain. As BTS stands beyond mere music, becoming a global cultural icon, this incident serves as a warning of how trust in such brands can lead to fraud. The actions of A, who leveraged the group's reputation for personal gain, have undoubtedly disappointed fans and stakeholders alike.
BTS and its agency, HYBE, maintain a high standard of morality within the music industry, and such incidents can tarnish their reputation. A's claims of closeness to chairman Bang Si-hyuk, contrasted with the fact that no real negotiations occurred, reinforce HYBE's credibility and serve as a cautionary tale for all stakeholders. Both investors and fans deserve protection from such fraudulent schemes.
Ultimately, reinforced measures are necessary to uphold the standing of the entertainment industry and safeguard public trust. Institutional mechanisms should be strengthened to prevent repetition of such fraud while increasing awareness among investors regarding their engagements related to artists. BTS is expected to continue creating art that lives up to their esteemed reputation in the long run.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: DB
