While K-pop fans around the world remain eagerly focused on HYBE’s upcoming projects—from their artists to new groups, and especially the explosive return of BTS—another event is also drawing equal attention: Chairman Bang Si Hyuk has been accused of engaging in illegal fraudulent trading prior to the company’s IPO.

This event has fueled public curiosity, especially given that HYBE is one of the most powerful entertainment companies in Asia, and Bang is widely recognized in the industry for his strategic vision and influential leadership.

Following the financial authorities' complaint, HYBE stated, "We apologize for causing concern due to news related to our IPO process," and added, "We will sincerely clarify that the listing at the time was carried out in compliance with all laws and regulations."

A representative of Chairman Bang also commented, "We actively explained during the investigation by financial authorities that there was no pursuit of personal gain, but it is unfortunate that this was not accepted," and added, "We will continue to sincerely address the related suspicions in the upcoming investigation."

Meanwhile, on July 24, an unusual scene unfolded at HYBE’s luxurious headquarters in Yongsan-gu, Seoul, as law enforcement officers arrived to carry out an official raid. The move sent ѕнσ¢кwaves through both the entertainment and financial sectors.

According to reports, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit conducted a search and seizure operation at HYBE’s main office in Yongsan. 

Earlier, on July 17, ρσℓι¢є officially requested a search warrant for HYBE’s headquarters. However, the process faced delays due to internal conflicts over leadership of the investigation. As a result, the case was handed over to special prosecutors under the Financial Supervisory Service on July 21 to ensure objectivity and transparency.

The fact that the investigation has been elevated to a higher authority reflects the seriousness of the allegations. As of now, both the ρσℓι¢є and prosecutors continue to collect evidence and testimonies related to the case.

Investigators claim that in 2019, Bang misled investors by stating that HYBE (then operating as Big Hit Entertainment) had no plans for an IPO that year. Based on this information, several current investors sold their shares.

However, contrary to that statement, HYBE proceeded with its IPO and went public in 2020, generating billions of dollars in profit. This action is believed to have caused significant financial damage to former investors who sold their shares at much lower prices than what the post-IPO market eventually offered.

In addition, Bang is also accused of allowing these existing investors to sell their shares to a Special Purpose Company (SPC) established by a private equity fund. Notably, two out of the three registered executives of that fund at the time of its formation were from HYBE—and both were known close αѕѕociates of Bang Si Hyuk.

This detail has raised suspicions of possible internal manipulation to serve personal or group interests, a violation of transparency and fairness principles, particularly for a publicly traded company.

Since Chairman Bang came under investigation, HYBE’s stock price has experienced a modest decline of about 1.8%, but there are no signs of a severe crash. Although the raid on July 24 ѕнσ¢кed the public, the stock market has remained relatively stable, with HYBE shares hovering around 260,000 KRW. This suggests that investors are currently holding back, waiting for further developments before making decisive moves.

However, signs of shaken investor confidence have begun to emerge, as allegations of internal manipulation and suspicious stock transactions continue to surface in the media. Some shareholder groups are reportedly considering filing a clαѕѕ-action lawsuit, while HYBE has either remained silent or stated that it will cooperate with the investigation.

While major investment funds have so far maintained their holdings, the future of HYBE will heavily depend on the outcome of the investigation and how the company handles its communication crisis and investor trust moving forward.