South Korean police have raided the Seoul headquarters of HYBE Corporation—the entertainment powerhouse behind global K-pop sensation BTS, as part of a fraud investigation targeting its founder, Bang Si-hyuk. The probe centers around allegations that Bang and three other executives “deceived” investors into selling their shares prior to HYBE’s 2020 IPO. The Financial Crimes Investigation Unit confirmed the raid in the Yongsan District, citing suspected violations of fair trading laws and financial misconduct.
$146 Million in Gains from Questionable Share Deals
According to local media reports, Bang and his team allegedly encouraged investors to part with their shares by providing misleading information. These shares were reportedly routed through an investment firm secretly controlled by HYBE insiders. Once the company went public, those executives allegedly profited from the significant rise in stock value, resulting in an estimated gain of 200 billion won (approximately $146 million).
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HYBE Denies Wrongdoing, Promises Cooperation
HYBE has strongly denied any criminal intent, insisting that the IPO process was “in full compliance with relevant laws.” The company issued a statement pledging “active cooperation” with authorities and vowed to clarify that the stock listing followed legal and regulatory procedures. Bang, who is both HYBE’s founder and largest shareholder, has not made a public statement but is expected to face questioning by prosecutors in the coming days.
BTS Comeback Plans Clash with Scandal
The timing of the investigation is particularly sensitive. All seven members of BTS are set to complete their mandatory military service and reunite for a highly anticipated comeback world tour in 2026. BTS’s economic impact is no small matter, the group previously contributed over $4 billion annually, or about 0.2% of South Korea’s total GDP, according to the Korea Culture and Tourism Institute. HYBE had recently announced a new album and tour, hoping to reignite its global dominance just as the scandal erupted.