Authorities have launched a full-scale investigation into HYBE Chairman Bang Si Hyuk, triggering a search and seizure operation at the company’s Yongsan-gu headquarters in Seoul.
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit began the operation. It’s part of a probe into suspected fraud and financial misconduct linked to HYBE’s 2020 IPO.
Allegations of Pre-IPO Deception
In 2019, HYBE’s chairman Bang Si Hyuk allegedly told investors there were no plans for an IPO. Believing this, many sold their shares.
Soon after, HYBE went public. Bang reportedly made billions of won from the IPO. Now, police are investigating whether he misled investors on purpose.
Suspicious Ties to Private Equity and SPCs
The case also involves a special purpose company (SPC) linked to a private equity fund. Investors were reportedly told to sell their shares to this SPC.
Two of the three fund leaders were HYBE insiders and close to Bang Si Hyuk. This raises concerns about conflict of interest and possible stock manipulation.
Legal Pressure Builds on K-pop’s Biggest Label
HYBE is home to BTS, SEVENTEEN, LE SSERAFIM, NewJeans, and many of the biggest names in K-pop. With its founder under investigation, the company now faces serious questions about its financial governance and ethical practices.
The Financial Crime Unit will continue reviewing digital files, contracts, and internal financial documents in the coming weeks. If evidence supports the claims, Bang Si Hyuk could face criminal charges.
Industry: What This Means for HYBE
HYBE is the agency behind BTS, LE SSERAFIM, SEVENTEEN, and NewJeans. The investigation could affect investor trust and the company’s image worldwide.
Police are now reviewing HYBE’s financial records and contracts. If wrongdoing is proven, criminal charges may follow.
