5 days ago
BTS agency raided over fraud claims
Industry giant: A woman taking photos in front of the signage for HYBE, the agency behind K-pop megastars BTS, displayed outside the company's headquarters in Seoul. — AFP
HYBE, the agency behind K-pop superstars BTS, was raided by police 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.
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 (RM613.3mil) 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.
It pledged '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 following 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. — AFP
