Law enforcement storms Hybe headquarters under suspicion of Bang Si-hyuk engaging in stock fraud before the company's Initial Public Offering (IPO)
Headline: Hybe Chairman Bang Si-hyuk Faces Allegations of Stock Fraud: Police Raid Headquarters
The Hybe Corporation, the powerhouse behind the global K-pop phenomenon BTS, is facing a storm of controversy as South Korean authorities intensify their investigation into alleged stock fraud by its chairman, Bang Si-hyuk.
On July 24, 2025, the Seoul Metropolitan Police Agency raided Hybe's headquarters in Seoul as part of the ongoing investigation. The raid, executed by the financial crime unit, was granted under a revised search and seizure warrant issued by the Seoul Southern District Court. This marks the first time authorities have executed a warrant in connection with the case.
The investigation alleges that Bang misled early investors in 2019 by falsely suggesting there was no plan to go public. This is said to have induced them to sell their shares to private equity firms linked to Bang, while Hybe was actively preparing for its initial public offering (IPO), which took place in October 2022.
Bang is accused of securing a secret agreement to receive 30 percent of gains from these private equity firms’ stock sales, an arrangement concealed during the listing process. The Financial Services Commission (FSC) estimates Bang gained unfair profits of around 200 billion won (approximately $150 million) through this scheme.
The case was referred for prosecution by the Financial Supervisory Service (FSS) and its independent Securities and Futures Commission in July 2025. Three former employees connected to these insider trading activities have already received sentences, and the police raid is part of widening efforts to gather evidence for prosecution.
The allegations against Bang involve activities before Hybe's initial public offering in October 2020. However, Hybe has not issued an official statement regarding the raid or the criminal complaint.
The scandal is putting pressure on Hybe’s leadership and affecting its stock performance. Hybe’s shares fell by 4.3% amid the growing legal troubles and a wider losing streak among K-pop stocks, reflecting investor nervousness over the unfolding situation.
The case has raised concerns about Hybe’s governance and its potential impact on the company’s global operations and artist management, including BTS, who are scheduled for a comeback in spring 2026.
Police declined to comment, saying, "No specific details can be confirmed at this time." The Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against Hybe's chairman, Bang Si-hyuk, a week ago, accusing him of violating the Capital Markets Act.
The raid occurred at 9 a.m. Thursday in Yongsan, Seoul. This is the first time authorities have executed a warrant in connection with the case, marking a significant development in the ongoing investigation.
The ongoing investigation into Hybe Corporation's chairman, Bang Si-hyuk, for alleged stock fraud has expanded to include a raid on the company's headquarters, signaling a significant development in the case. This scandal, involving accusations of insider trading and violations of the Capital Markets Act, has sparked concerns about the company's general-news status and could potentially impact its business operations, finance, and even the future of its famous artists, like BTS.
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