Latest news with #HYBE
Hindustan Times
4 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
4 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.
Hindustan Times
4 days ago
- Entertainment
- Hindustan Times
Korean girl group NJZ heads to court over ADOR contract dispute: ‘We can't trust ADOR anymore..'
The contract dispute between NJZ (formerly NewJeans) and ADOR is growing messier with every court date. On July 24, the Seoul Central District Court held its third hearing in the ongoing case over the validity of the girl group's exclusive contract — and confirmed a closed-door mediation session set for August 14. With both sides sticking to their positions, the outcome of this mediation could shape the group's future. Korean girl group NJZ Timeline of the battle The legal rift began when the five-member group, via their lawyers, moved to terminate their contract with ADOR in November 2023, a move the agency is fighting to overturn. At the heart of the case is former ADOR CEO Min Hee-jin, who remains a polarising figure in the narrative. NJZ's legal representatives argue that the dispute stems from a now-closed internal audit of Min, initiated by ADOR's parent company HYBE in May. 'This legal fight began because HYBE launched an audit against Min Hee Jin in April 2024. They claimed she was trying to seize management control and 'take' NewJeans, but there was no evidence in the audit or grounds for dismissal. The main issue was an alleged breach of duty, and in the midst of it all, NewJeans suffered the most. Police later found no evidence of Min Hee Jin committing a breach of duty. The audit and dismissal attempts were based on false premises and intended to remove Min Hee Jin,' said NJZ's legal team. In court, NJZ's attorneys claimed ADOR failed in its basic responsibilities, justifying the group's decision to walk away. The legal team further said, 'Today's ADOR is not the same ADOR that led to our past success. It's now controlled by HYBE staff. The so-called generous support and dividends came when Min Hee Jin was CEO. We can't trust ADOR anymore, which is why we can't return to it in its current state.' ADOR, however, hit back, stating that the group's legal arguments have changed over time and accused them of retroactively trying to build a case. 'This is an unreasonable attempt to invalidate the contracts after the fact,' said ADOR's legal counsel, who also emphasised the agency's financial investment in the group — over 21 billion won ($15.3 million) in total, including 7 billion won on the debut album and 2 billion won on music videos. ADOR claimed that NewJeans' rapid success was a result of the agency's strategic planning and support, arguing that the attempt to leave just two years after debut is unjustified. The agency also painted Min as the mastermind behind the group's attempted exit, citing alleged private messages between her and former executives that suggest a long-term plan to take the group with her. According to ADOR, those messages even detailed strategies such as launching plagiarism accusations against HYBE's other girl group, Illit, and pushing certain narratives in the press. ADOR alleged that the contract termination notice itself was crafted by Min's legal team. In response to claims of mismanagement, ADOR maintained that it fulfilled its obligations and revealed that each member had earned more than 5 billion won individually. 'The agency is still preparing for the group's comeback,' ADOR's lawyer stated. 'Our staff are waiting for the day they return.' The next chapter in this saga unfolds on August 14, behind closed doors. But for fans and industry watchers, the stakes couldn't be more public.
Express Tribune
5 days ago
- Business
- Express Tribune
Police investigate BTS record label for fraud
HYBE, the agency behind K-pop superstars BTS, was raided by police on Thursday in connection with alleged fraudulent trading involving its founder Bang Si-hyuk, investigators said. "We are conducting a search and seizure at HYBE's headquarters in Yongsan District," Seoul police said in a brief statement, as per AFP. Bang, the mastermind behind BTS, is under investigation over allegations that he misled early investors to reap illicit profits from the company's 2020 initial public offering. 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 early July, pledging "active cooperation" with authorities to get to the bottom of the case. Bang allegedly misled HYBE's early investors, who held pre-IPO shares, by telling them in 2019 he had no plans to take the company public. He then allegedly encouraged them to sell their shares to private equity funds when in fact IPO plan was in the making. HYBE went public in 2020, after the shareholders sold their stakes. The 52-year-old is accused of secretly striking a deal with the private equity funds to receive a portion of the profits they made from selling shares after the IPO. The investigation comes as all seven BTS members complete their mandatory military service and prepare for a comeback next year. HYBE announced this month that a new 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. Before their military service, BTS generated more than 5.5 trillion won (USD4 billion) in yearly economic impact, according to the Korea Culture and Tourism Institute. That accounts for roughly 0.2 per cent of South Korea's total GDP, according to official data. There had been debate over whether BTS should be granted exemptions from military service -—sometimes granted to Olympic medallists and classical artists who win top international awards — but pop stars do not qualify under South Korean laws. With the lack of public consensus on the matter, the members enlisted individually, beginning in late 2022.
Yahoo
5 days ago
- Entertainment
- Yahoo
Hailey Bieber's Rhode Deal Will Help Justin's Scooter Braun Settlement, ‘Source' Claims
Justin Bieber is leaning on his wife to clear his debts with former manager Scooter Braun. The singer has reportedly put his $31.5 million settlement with Braun and his former company, HYBE Corporation, on hold. As per the source, the pop icon is relying on his wife's billion-dollar Rhode deal settlement to move forward. Justin Bieber's settlement contract with Scooter Braun has a key provision, 'source' claims Justine Bieber might not settle his multimillion-dollar debt with former manager Scooter Braun and his former company, HYBE Corporation, anytime soon. A source has revealed that the singer is reportedly depending on his wife, Hailey Bieber's Rhode deal payout to clear his debt. An insider told TMZ that the pop icon will not clear his $31.5 million debt until the funds from Hailey's recent multibillion-dollar deal with e.l.f. Beauty is securely in the bank. The Rhode's sale, valued at approximately $1 billion, will likely close 'probably in a month or two.' Till then, the 'Baby' singer is ready to wait for the settlement. Although with the Rhode deal, it's the model who will get the majority of the money, Justin will get some amount too, since he is an investor in the company. As per the report, the 31-year-old singer will get $50 million cut from the sale. In May, an independent audit determined that the dad of one owes millions to Braun and his then-company HYBE due to the abrupt cancellation of his 2022 'Justice' world tour. The pop sensation was forced to cancel his tour after developing Ramsay Hunt syndrome, which caused facial paralysis. At the time, HYBE paid AEG $26 million to cover the costs associated with the cancelled tour. As part of their settlement, Justin has agreed to pay the South Korean entertainment company, HYBE, the full $26 million. He has also agreed to half of the remaining commission debt, totalling approximately $31.5 million. Originally reported by Parul Singh on Reality Tea. The post Hailey Bieber's Rhode Deal Will Help Justin's Scooter Braun Settlement, 'Source' Claims appeared first on Mandatory. Solve the daily Crossword
