Police raid HYBE headquarters: K-pop giant under fire over chairman Bang Si-hyuk's alleged IPO scandal
Karen Noronha | Jul 24, 2025, 11:48 IST
Highlight of the story: The Seoul Metropolitan Police Agency is examining claims that chairman Bang Si-hyuk misled early investors and amassed illicit profits worth hundreds of billions of won ahead of HYBE's high-profile IPO in 2020.
In a shocking turn of events for the K-pop industry, authorities raided HYBE's Yongsan headquarters on Thursday (July 24) as part of an ongoing investigation into alleged stock fraud by chairman Bang Si-hyuk. According to The Korea Herald, the Seoul Metropolitan Police Agency is investigating allegations that Bang Si-hyuk misled early investors and accumulated illegal profits totaling hundreds of billions of won prior to HYBE's high-profile IPO in 2020.
This scandal will surely threaten to shake the very foundation of the powerhouse behind global superstars like BTS, TXT, SEVENTEEN, and many more artists.
The founder of Big Hit Entertainment, which later became HYBE - is under investigation for allegedly deceiving early investors in late 2019. Reports suggest the Bang Si-hyuk told them the company had no plans to go public, prompting them to sell their shares. He then allegedly pushed forward with HYBE's initial public offering, securing profits estimated in the hundreds of billions of won.
Investigators are also looking into whether Bang Si-hyuk facilitated the sale of these investors' shares to a special purpose business formed by a private equity firm.
While many Korean media outlets have suggested that, two of the fund's three registered officers at the time were allegedly former HYBE workers and known close associates of Bang Si-hyuk; HYBE has stated thatnone of the three registered officers were former HYBE employees, and only one individual was known to be an acquaintance of Chairman Bang Si-Hyuk.
The Seoul Metropolitan Police applied for a search warrant on July 17, targeting HYBE's Yongsan headquarters and other related locations. However, jurisdiction over the case has become a point of contention.
On Monday, the Financial Supervisory Service's special investigation team was granted authority over the probe by the Seoul Southern District Prosecutors' Office - raising concerns about conflicting approaches and priorities in the ongoing investigation.
For all the latest K-drama, K-pop, and Hallyuwood updates, keep following our coverage here.
This scandal will surely threaten to shake the very foundation of the powerhouse behind global superstars like BTS, TXT, SEVENTEEN, and many more artists.
Bang Si-hyuk accused of misleading investors ahead of IPO
The founder of Big Hit Entertainment, which later became HYBE - is under investigation for allegedly deceiving early investors in late 2019. Reports suggest the Bang Si-hyuk told them the company had no plans to go public, prompting them to sell their shares. He then allegedly pushed forward with HYBE's initial public offering, securing profits estimated in the hundreds of billions of won.
Bang Si‑hyuk
Investigators are also looking into whether Bang Si-hyuk facilitated the sale of these investors' shares to a special purpose business formed by a private equity firm.
While many Korean media outlets have suggested that, two of the fund's three registered officers at the time were allegedly former HYBE workers and known close associates of Bang Si-hyuk; HYBE has stated thatnone of the three registered officers were former HYBE employees, and only one individual was known to be an acquaintance of Chairman Bang Si-Hyuk.
The Seoul Metropolitan Police applied for a search warrant on July 17, targeting HYBE's Yongsan headquarters and other related locations. However, jurisdiction over the case has become a point of contention.
On Monday, the Financial Supervisory Service's special investigation team was granted authority over the probe by the Seoul Southern District Prosecutors' Office - raising concerns about conflicting approaches and priorities in the ongoing investigation.
For all the latest K-drama, K-pop, and Hallyuwood updates, keep following our coverage here.