In a shocking turn, the HYBE Seoul headquarters—home to BTS’ agency—was raided on Thursday. Police and investigators entered the building as part of a large probe into a $146 million stock fraud.
The man at the center of the storm is Bang Si-hyuk, HYBE’s founder. Along with a few top executives, he is accused of misleading investors back in 2019. At that time, HYBE was still called BigHit Entertainment.
What Is the Case About?
The Financial Crimes Unit of the Seoul Metropolitan Police has confirmed the raid. The officials said, “We are conducting a search and seizure at HYBE’s headquarters in Yongsan District.”
According to Korean media, Bang and his team told investors there were no plans for an IPO (Initial Public Offering). But at the same time, they were secretly preparing to go public.
In total, they were reportedly working on a 400 billion KRW (about $290 million) IPO deal. The problem? Investors sold their shares believing the company wasn’t going public. Soon after, HYBE launched the IPO—and the insiders made big money.
How Much Did Bang Make?
Reports say Bang Si-hyuk earned around 200 billion won, or $146 million, after the IPO. This profit was not small. It came from selling shares once the stock price shot up after the company went public in 2020.
Meanwhile, many early investors, who trusted the management, missed out. Some of them sold their shares too early, based on false statements made by HYBE’s leaders.
Private equity firms like Easton PE and Newmain Equity later bought large stakes, likely unaware of what had happened earlier.
What Happens Now?
HYBE’s financial regulator has already referred Bang to the prosecution. This means a deeper investigation is now underway.
There are questions about whether the management lied on purpose. If proven true, this could be a serious blow to HYBE’s image and stock.
For a company that built its empire with BTS and K-pop power, this scandal could shake investor trust. And in Korea’s tight-knit music world, that trust matters a lot.
This isn’t just a business story. It’s about power, money, and trust in the K-pop world. When the lights fade and the music stops, real-life problems come to the front.
The raid on the HYBE Seoul headquarters is not the end. It may just be the beginning.
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