BTS' parent company HYBE raided by South Korean police in wake of founder Bang Si-hyuk's alleged stock fraud
The search was confirmed by the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, who said in a brief statement: 'We are conducting a search and seizure at HYBE's headquarters in Yongsan District.' The raid follows a referral made after the Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against Bang, accusing him of violating the Capital Markets Act by engaging in unfair trading practices.
Why is this happening?
Bang and three other HYBE executives are accused of deceiving minority shareholders into selling their shares to an investment firm secretly controlled by them. The allegations suggest that the group later profited from those shares post-listing — a move that, if proven true, could be classified as a serious case of unfair trade practice.
HYBE has publicly denied all allegations against Bang. In a statement released earlier this month, the company said, 'We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations,' adding that it will 'actively cooperate' with the authorities to resolve the issue.
Bang Si-hyuk, also known as 'Hitman' Bang, is HYBE's founder and largest shareholder — the man widely credited with transforming BTS from a small K-pop act into a global cultural force. But the recent controversies, which include employee misconduct, like leaking BTS's flight details, and a wave of insider trading accusations are threatening to overshadow the company's carefully built public image.
For now, HYBE says it is taking the necessary time to 'demonstrate that the IPO was carried out in full compliance.' But with the police tightening their grip and public scrutiny intensifying, the next few weeks could be crucial for one of K-pop's most powerful empires.
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