BTS Agency HYBE Headquarter Raided Over SHOCKING Allegations Of Insider Trading
HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE.
HYBE, the powerhouse agency behind global K-pop sensation BTS, is under scrutiny after authorities raided its headquarters in Seoul over shocking insider trading allegations.
According to The Korea Times, the Seoul Southern District Prosecutors' Office searched HYBE's office on Thursday as part of an ongoing investigation. The probe centers around a HYBE executive accused of earning illegal profits of 240 million KRW (approximately $175,000) through insider trading.
Reports claim the unnamed executive bought stock in YG Plus, an affiliate of HYBE's competitor YG Entertainment, based on confidential information about HYBE's planned partnership with the company. The deal led to a surge in YG Plus' stock price, allowing the executive to allegedly make significant gains.
HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE. BTS, the agency's most high-profile act, has achieved global fame with nine platinum records and sold-out stadiums worldwide.
But the controversy doesn't end there. In a separate investigation, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police is examining HYBE's chairman Bang Si Hyuk for alleged fraudulent trading dating back to 2019.
Authorities allege that Bang misled investors by denying any plans for an IPO, encouraging them to sell their HYBE shares to a private equity fund (PEF) linked to him. At the time, HYBE was secretly preparing to go public. When the company eventually did file for an IPO, Bang reportedly benefitted through a 30% return-sharing deal with the PEF, a transaction not disclosed during the IPO process.
The Financial Supervisory Service (FSS) now deems this an act of unfair trading under South Korea's Capital Markets Act. If found guilty and the gains exceed 5 billion KRW (approximately $3.64 million), the offence could lead to life imprisonment or a minimum of five years behind bars.
HYBE has responded by stating that all transactions were legally vetted, but the growing controversy is fuelling public concern.
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