BTS' Parent Company HYBE's Seoul Office ‘Searched' Over Alleged Unfair Trading
The South Korean Police raided the Seoul headquarters of HYBE, the entertainment giant behind the global K-pop sensation BTS, on Thursday, July 24. The raid was part of an ongoing investigation involving the company's chairman, Bang Si Hyuk. As reported earlier, he has been accused of engaging in fraudulent and unfair trading under the Capital Markets Act.
The search was confirmed by the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, who, in a brief statement to the media, said, 'We are conducting a search and seizure at HYBE's headquarters in Yongsan District." This reportedly came after the South Korean Financial Supervisory Service (FSS) held a meeting of its Securities and Futures Commission (SFC) to discuss the level of disciplinary action against the HYBE chairman.
Why Bang Si Hyuk Is Facing Fraud Allegations?
Before their IPO in 2020, Bang Si Hyunk and three other top executives deceived minority shareholders by having them sell their HYBE shares to a private equity fund (PEF), which he secretly controlled. Therefore, when the entertainment company eventually filed for an IPO, the chairman and the others benefited from the sales of the shares. Reportedly, Bang Si Hyuk made profits of around 200 billion KRW or $146 million in the process. If found guilty, he could face life imprisonment or a minimum of five years in prison.
How Has HYBE Reacted To The Fraud Allegations?
HYBE has denied all the allegations against its chairman. In a statement released earlier this month, the South Korean company shared, 'We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations." They also added that they will 'actively co-operate" during the investigations by the authorities.
'We will take the necessary time to thoroughly demonstrate that the IPO was carried out in full compliance with laws and regulations," HYBE mentioned.
Notably, Bang Si Hyuk, also known as Hitman Bang, is the biggest shareholder in HYBE. He is the man being credited for the widespread popularity of BTS, who helped the septet transform from a small K-pop act to one of the biggest names in the global music industry.
The investigation against Bang comes at a time when BTS, after the completion of their respective mandatory military service, reunited as a full unit after three years. They not only made a comeback to the music scene with their first-ever live album, Permission to Dance On Stage – Live, but also announced a brand-new album, which is slated to be released between March and May next year. After the release, the septet, comprising RM, Jin, Suga, J-Hope, Jimin, V and Jungkook, will also embark on a world tour.
First Published:
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
3 hours ago
- Hans India
South Korean shipbuilders' global order share rises amid US-China tension
Seoul: South Korean shipbuilders saw a significant rebound in their global order share in the first half amid US sanctions targeting Chinese rivals, an industry report showed on Tuesday. According to the report from the Export-Import Bank of Korea, South Korea secured 25.1 percent of global shipbuilding orders in terms of compensated gross tons (CGT) during the January-June period, reports Yonhap news agency. It marks a substantial rise from 17.2 percent a year earlier, narrowing the gap with leader China from 51 percentage points to 26.7 percentage points. Last year, South Korea's share of global annual orders stood at 15 percent, the lowest in eight years. This year's rebound is largely attributed to recent U.S. trade measures. The U.S. Trade Representative (USTR) has introduced a policy to impose port entry fees on Chinese shipping companies and operators of Chinese-built vessels, effectively discouraging reliance on Chinese shipyards. In the first half of the year, container ships accounted for 53.3 percent of South Korea's total order volume of 4.87 million CGT. Last year, South Korean shipyards secured just two midsize-to-large container ship orders. "The shift in orders from Chinese to Korean shipbuilders amid U.S. sanctions has contributed to the increase in Korea's global market share," the report said. Despite the improved performance, the bank stressed the need for South Korea's shipbuilding industry to use this opportunity to enhance its fundamental competitiveness for long-term resilience. Meanwhile, South Korea ranked second in new global shipbuilding orders in June, industry data showed. South Korean shipyards clinched orders totaling 1.05 million compensated gross tons (CGTs) for eight ships, accounting for 41 percent of the global total at 2.56 million CGTs last month, according to London-based Clarkson Research Services. China ranked first, taking up 53 percent of the global total. In terms of order backlog, China ranked first with 96.82 million CGTs, or 59 percent of the global total of 163.37 million CGTs as of the end of June, with South Korea trailing in second with 35.42 million CGTs, accounting for 22 percent of the total. Clarkson's Newbuilding Price Index, a barometer of price changes in newly built ships, came to 187.11 last month, up 0.42 point from a year ago.
Hans India
3 hours ago
- Hans India
Daily forex turnover hits record high in Q2 in S. Korea on foreign investment
Seoul: Daily foreign exchange (FX) trading by banks in South Korea reached an all-time high in the second quarter on increasing foreign investment in domestic securities and exchange rate volatility, central bank data showed on Tuesday. The daily FX turnover, including trading of derivatives, came to an average of US$82.16 billion during the April-June period, up 12.9 percent from the first quarter, according to the data from the Bank of Korea (BOK). It marked the largest quarterly figure since the central bank began compiling relevant data under the current statistical standards in 2008, reports Yonhap news agency. "The increase was due to exchange rate volatility and increased trading by foreign investors in domestic securities," a BOK official said. "Since the extension of foreign exchange market trading hours in July last year, trading volume has steadily increased," he added. The daily average turnover for FX derivatives advanced 10.2 percent from the previous quarter to $49.39 billion in the second quarter, while the average daily spot FX trading volume surged 17.3 percent on-quarter to $32.77 billion, the data showed. Meanwhile, foreign investors purchased the highest value of South Korean stocks in 15 months in June, central bank data showed this month, driven by eased concerns over U.S. trade policies and optimism about the new Seoul government's market-supportive measures. Offshore investors bought a net US$2.27 billion worth of local stocks last month, marking a second consecutive month of net buying, according to the data from the Bank of Korea (BOK). The June figure marked the highest level since March 2024, when foreigners purchased a net $3.84 billion worth of local stocks. Foreign investors also net purchased $2.81 billion of Korean bonds in June, extending their buying streak to the fifth month.
Time of India
4 hours ago
- Time of India
Tesla signs $16.5 billion chip supply deal with Samsung
Tesla has signed a $16.5 billion agreement with Samsung Electronics to source chips, a move that could support the South Korean firm's contract chip manufacturing unit, which has been under financial pressure, reported Reuters. The deal comes as Samsung, the world's largest memory chipmaker, seeks to increase its share in the foundry market where it trails rivals such as Taiwan's TSMC and South Korea's SK Hynix. According to Samsung, the agreement will run through the end of 2033, although it initially withheld the client's name citing confidentiality. Reuters, citing three sources familiar with the matter, confirmed Tesla as the customer. Manufacturing in Texas Tesla CEO Elon Musk said that Samsung's new semiconductor facility in Taylor, Texas, will manufacture Tesla's next-generation AI6 chips. 'Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,' Musk said in a post on X. 'This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,' he added. Musk also noted that the $16.5 billion figure was a minimum estimate and that actual output could be significantly higher. Samsung's Taylor facility had faced delays and lacked major clients, leading to a postponement of ASML chipmaking equipment deliveries, according to a Reuters report from October. The start of production at the plant has been deferred to 2026. Ryu Young-ho, a senior analyst at NH Investment & Securities, said the order was significant for the Taylor fab, which had "virtually no customers," although it may represent a relatively small portion of Samsung's overall logic chip revenue annually. Strategic implications While a timeline for AI6 chip production was not disclosed, Musk had earlier said AI5 chips would be produced by the end of 2026, suggesting AI6 might follow in 2027 or 2028. Tesla's current AI4 chips, which power its Full Self-Driving system, are produced by Samsung, while TSMC is expected to produce the AI5 chip. The deal also highlights Tesla's shifting supplier strategy and its involvement in chip design and production efficiency. Samsung's foundry business, which manufactures logic chips for clients, currently holds just 8% of the global market compared to TSMC's 67%, according to Trendforce data. Pak Yuak, an analyst at Kiwoom Securities, estimated that Samsung's foundry losses exceeded 5 trillion won (approximately $3.6 billion) in the first half of the year. The Tesla deal is expected to reduce some of these losses. It is not yet clear whether the agreement is linked to ongoing trade discussions between South Korea and the United States. A South Korean trade ministry official told Reuters he was not aware of the deal being part of any negotiations.
