HYBE Sends Email To Employees After Raid In Fraud Case: 'Concentrate On Your Responsibilities'
A day after South Korean police raided the Seoul headquarters of HYBE, it has now been reported that BTS' parent company has sent out a confidential email to its employees. In this email, the company has asked its employees not to worry about the ongoing investigation involving alleged stock manipulation by the company's founder, Bang Si-hyuk. Instead, the teams have been asked to focus on their responsibilities.
'The company is actively cooperating with the authorities to clarify the facts," HYBE's Chief Legal Officer, Jung Jin-Soo, stated in the email. 'We will provide a thorough explanation to demonstrate that all matters were handled in compliance with laws and regulations," he added.
'We are doing everything we can to prevent this situation from causing unnecessary concern among our team. Please do not be overly worried about the investigation at the Yongsan office and continue to concentrate on your individual responsibilities," the email further read.
Why Is HYBE Under The Radar?
Bang Si-hyuk, founder and chairman of Hybe – the South Korean entertainment company which handles BTS, has been accused of indulging in fraudulent activities. As reported by allkpop, Bang has been accused of engaging in fraudulent and unfair trading under the Capital Markets Act.
The financial watchdog is investigating Bang over allegations that he misled investors by denying any plans for an IPO. With this, he encouraged them to sell their HYBE shares to a private equity fund (PEF) linked to him. This was around the time when HYBE was secretly preparing to go public. Therefore, when the company eventually did file for an IPO, Bang reportedly benefited through a 30% return-sharing deal with the PEF, a transaction not disclosed during the IPO process.
This means that if found guilty and the gains exceed 5 billion KRW (approximately $3.64 million), Bang could face life imprisonment or a minimum of five years in prison.
What Does HYBE Say About The Alleged Fraud?
Previously, HYBE reacted to the controversy and claimed that 'all transactions were carried out legally by undergoing thorough legal reviews." 'We apologise for causing concern due to news related to our IPO process. We are actively cooperating with financial authorities and the police by providing detailed explanations and submitting relevant documents regarding the matters currently under investigation," its statement read. Reportedly, the company is also running a parallel investigation, but there is no official confirmation of this as of now.
For the unversed, HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE.
First Published:
July 26, 2025, 12:31 IST
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