Latest news with #FinancialCrimesInvestigationUnit
News18
25-07-2025
- 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
24-07-2025
- 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.
Mint
24-07-2025
- Business
- Mint
South Korea police raid offices of BTS agency HYBE over fraud trading probe
The Seoul headquarters of HYBE, the agency which manages global K-pop boy band BTS, was raided by the South Korean police on Thursday over allegations of unfair share trading involving the company chairman, Bang Si-hyuk. According to media reports, the country's financial regulator has referred Bang to prosecutors to investigate his activities during the company's stock market listing. 'We are conducting a search and seizure at HYBE's headquarters in Yongsan District,' the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency said in a brief statement. Ahead of the 2020 IPO, Bang and three other executives were accused of having 'deceived' investors into selling their shares to an investment company they controlled. Media reports suggest that these executives had eventually profited from share sales after the listing. He is accused of gaining around 200 billion won (US$146 million) 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 a statement in early July, pledging 'active cooperation' with authorities to investigate the case. 'We will take the necessary time to thoroughly demonstrate that the IPO was carried out in full compliance with laws and regulations,' HYBE said. Bang is HYBE's founder and largest shareholder. The investigation comes as all seven BTS members complete their mandatory military service and prepare for a comeback next year. Earlier this month, HYBE announced that a new BTS album and world tour were scheduled for 2026. BTS, known for championing progressive causes, holds the record as the most-streamed group on Spotify and became the first K-pop act to top both the Billboard 200 and Billboard Artist 100 charts in the United States. According to the Korea Culture and Tourism Institute, before their military service, BTS generated more than 5.5 trillion won ($4 billion) in yearly economic impact. That accounts for roughly 0.2 per cent of South Korea's total GDP, according to official data. (With inputs from agencies)
