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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.
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.
News18
6 days ago
- Business
- News18
BTS' Parent Company HYBE's Seoul Office ‘Searched' Over Alleged Unfair Trading
HYBE's chairman, Bang Si Hyuk, has been accused of engaging in fraudulent and 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.
Hindustan Times
7 days ago
- Business
- Hindustan Times
BTS' parent company HYBE raided by South Korean police in wake of founder Bang Si-hyuk's alleged stock fraud
BTS' parent company, HYBE, is officially under fire — and this time, the trouble isn't just fan speculation or social media noise. On Thursday at 9am, the South Korean police raided HYBE's Seoul headquarters as part of a financial crime investigation involving alleged stock manipulation. At the center of it all? HYBE founder and chairman, Bang Si-hyuk. Bang Si-hyuk, also known as "Hitman" Bang The search was confirmed by the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, who said in a brief statement: 'We are conducting a search and seizure at HYBE's headquarters in Yongsan District.' The raid follows a referral made after the Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against Bang, accusing him of violating the Capital Markets Act by engaging in unfair trading practices. Why is this happening? Bang and three other HYBE executives are accused of deceiving minority shareholders into selling their shares to an investment firm secretly controlled by them. The allegations suggest that the group later profited from those shares post-listing — a move that, if proven true, could be classified as a serious case of unfair trade practice. HYBE has publicly denied all allegations against Bang. In a statement released earlier this month, the company said, 'We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations,' adding that it will 'actively cooperate' with the authorities to resolve the issue. Bang Si-hyuk, also known as 'Hitman' Bang, is HYBE's founder and largest shareholder — the man widely credited with transforming BTS from a small K-pop act into a global cultural force. But the recent controversies, which include employee misconduct, like leaking BTS's flight details, and a wave of insider trading accusations are threatening to overshadow the company's carefully built public image. For now, HYBE says it is taking the necessary time to 'demonstrate that the IPO was carried out in full compliance.' But with the police tightening their grip and public scrutiny intensifying, the next few weeks could be crucial for one of K-pop's most powerful empires.
