HYBE Corporation, the powerhouse behind global K-pop acts like BTS, SEVENTEEN, and TXT, is under intense scrutiny following a police raid at its Seoul headquarters. The raid, conducted on July 24, 2025, is part of an ongoing investigation into allegations of unfair stock trading involving HYBE's founder and chairman, Bang Si-hyuk.
According to South Korean authorities, Bang is accused of misleading early investors in late 2019 by claiming that HYBE had no plans to go public. This allegedly prompted investors to sell their shares. However, HYBE proceeded with its initial public offering (IPO) in 2020, leading to significant profits for Bang and other executives, News.Az reports, citing foreign media.
Reports estimate that Bang personally gained approximately 200 billion won (around $146 million) through these transactions Investigators are also examining whether Bang facilitated the acquisition of shares by a private equity firm through a special purpose entity, reportedly led by former HYBE employees and close associates. While some media outlets suggest that two of the fund's three registered officers were allegedly former HYBE workers, HYBE has stated that none of the three registered officers were former employees, and only one individual was known to be an acquaintance of Chairman Bang.
The Financial Supervisory Service (FSS), South Korea's financial regulator, has referred Bang to prosecutors over suspicions related to HYBE's 2020 IPO. Bang and three executives are accused of misleading investors into selling shares to an investment firm they reportedly controlled, profiting after the public listing.
HYBE has denied any wrongdoing, stating that the IPO followed all legal and regulatory guidelines. The company has pledged full cooperation with authorities as the investigation progresses.
This investigation casts a shadow over HYBE's reputation, especially given its role in managing some of the most influential artists in the global music industry. The outcome of this probe could have significant implications for the company's future operations and its standing in the entertainment sector.
As the investigation unfolds, stakeholders and fans alike are closely monitoring developments, awaiting further updates on this high-profile case.
