Latest news with #BangSi-hyuk


Korea Herald
2 days ago
- Business
- Korea Herald
Tax authorities launch investigation into Hybe amid insider trading allegations against chairman Bang Si-hyuk
National Tax Service probe follows recent police raid of K-pop powerhouse over alleged capital market violations Hybe, the entertainment giant behind K-pop phenomenon BTS, is now under investigation by the country's tax authorities, following a police raid last week over allegations that Chairman Bang Si-hyuk violated capital market laws. According to a local report Tuesday, National Tax Service officials were dispatched to Hybe's headquarters in Seoul to secure documents and financial records. The investigation is being led by the NTS' 4th Bureau of Investigation at the Seoul Regional Tax Office — a division typically responsible for special or irregular audits. Earlier the same day, the NTS announced in a briefing that it had launched tax probes into 27 individuals and entities suspected of stock market manipulation and tax evasion, with Hybe among them. The total scale of the suspected tax evasion is estimated at around 1 trillion won ($718.7 million). 'Unfair practices in the stock market have caused both domestic and global investors to lose confidence in Korea's financial system,' the agency said. 'This has deepened the so-called 'Korea Discount' and contributed to the nation's sluggish economic growth. We will thoroughly investigate tax evasion tied to capital market disruptions.' This marks the first time Hybe has faced a tax audit since 2022, when the Seoul tax office conducted a regular investigation and imposed a multi-billion-won penalty on the company. The new probe comes just days after police raided Hybe as part of a separate investigation into Bang. Authorities are probing allegations that Bang misled existing investors in 2019 by claiming the company had no plans for an initial public offering, only to later proceed with one. He is suspected of encouraging those investors to sell their shares to a private equity fund with which he was personally affiliated. According to South Korean financial regulators, Bang ultimately received 30 percent of the fund's resale profit following the IPO, allegedly pocketing roughly 190 billion won in unjust gains.


Hindustan Times
5 days ago
- Business
- Hindustan Times
BTS' parent company HYBE sends confidential email to staff after raids at headquarters in Seoul
After Seoul Police conducted a search and seizure operation at the headquarters of HYBE, the company's chief legal officer, Jung Jin-soo, reportedly sent an internal email to employees. As per an Allkpop report, Jin-soo urged the staff to stay focused and calm. This comes after allegations of fraudulent trading. Bang Si-hyuk founded HYBE nearly two decades ago. HYBE has a message for its staff after police raid The mail said that HYBE will "provide a thorough explanation". 'The company is actively cooperating with the authorities to clarify the facts. We will provide a thorough explanation to demonstrate that all matters were handled in compliance with laws and regulations.' It further read, '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.' What are the allegations against HYBE, Bang Si-hyuk It all started with the issuance of a search warrant on July 17. On Thursday, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency conducted a search and seizure operation at the headquarters of HYBE in Yongsan, Seoul. The raid followed a referral made after the Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against HYBE founder and chairman, Bang Si-hyuk, accusing him of violating the Capital Markets Act by engaging in unfair trading practices. Si-hyuk is accused of misleading investors, including venture capital firms, in 2019 by falsely claiming that HYBE didn't have plans to go public. He then allegedly transferred the company shares to a special purpose company (SPC), which was created by a private equity fund formed by HYBE executives. Later, the SPC sold the shares and they reportedly shared 30% of the profit with Si-hyuk. The move was based on a prior shareholder agreement. Investigators think that Si-hyuk's personal gain from the deal is at around 120 billion KRW (approximately $86 million).


News18
5 days ago
- Business
- News18
HYBE Sends Email To Employees After Raid In Fraud Case: 'Concentrate On Your Responsibilities'
Bang Si-hyuk, founder and chairman of Hybe – the South Korean entertainment company which handles BTS, has been accused of indulging in fraudulent activities. 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 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.


Express Tribune
5 days ago
- Business
- Express Tribune
Police investigate BTS record label for fraud
HYBE, the agency behind K-pop superstars BTS, was raided by police on Thursday in connection with alleged fraudulent trading involving its founder Bang Si-hyuk, investigators said. "We are conducting a search and seizure at HYBE's headquarters in Yongsan District," Seoul police said in a brief statement, as per AFP. Bang, the mastermind behind BTS, is under investigation over allegations that he misled early investors to reap illicit profits from the company's 2020 initial public offering. He is accused of gaining around 200 billion won (US$146 million) through the process, according to local reports. HYBE has denied Bang committed any wrongdoing. "We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations," the company said in early July, pledging "active cooperation" with authorities to get to the bottom of the case. Bang allegedly misled HYBE's early investors, who held pre-IPO shares, by telling them in 2019 he had no plans to take the company public. He then allegedly encouraged them to sell their shares to private equity funds when in fact IPO plan was in the making. HYBE went public in 2020, after the shareholders sold their stakes. The 52-year-old is accused of secretly striking a deal with the private equity funds to receive a portion of the profits they made from selling shares after the IPO. The investigation comes as all seven BTS members complete their mandatory military service and prepare for a comeback next year. HYBE announced this month that a new album and world tour were scheduled for 2026. BTS, known for championing progressive causes, holds the record as the most-streamed group on Spotify and became the first K-pop act to top both the Billboard 200 and Billboard Artist 100 charts in the United States. Before their military service, BTS generated more than 5.5 trillion won (USD4 billion) in yearly economic impact, according to the Korea Culture and Tourism Institute. That accounts for roughly 0.2 per cent of South Korea's total GDP, according to official data. There had been debate over whether BTS should be granted exemptions from military service -—sometimes granted to Olympic medallists and classical artists who win top international awards — but pop stars do not qualify under South Korean laws. With the lack of public consensus on the matter, the members enlisted individually, beginning in late 2022.


News18
6 days ago
- Business
- News18
BTS' Parent Company HYBE Raided, South Korean Police Probe Alleged Stock Manipulation
Last Updated: HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE. South Korean police raided the Seoul headquarters of BTS' parent company HYBE on Thursday. Raids were conducted at 9 am on July 24 as part of a financial crime investigation involving alleged stock manipulation by the company's founder, Bang Si-hyuk. The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency confirmed raids at HYBE's office in a statement and said, 'We are conducting a search and seizure at HYBE's headquarters in Yongsan District." 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. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.