As part of an inquiry into claims of unjust share trading, including the chairman and founder of K-pop powerhouse HYBE, Bang Sihyuk, South Korean authorities invaded the Seoul headquarters of the organization on Thursday, a source acquainted with the situation confirmed.
Local news reports say the raid comes from a recommendation by the financial authority of the nation asking prosecutors to look into Bang’s actions during HYBE’s 2020 initial public offering.
Along with three other HYBE executives, Bang is charged with defrauding investors before the corporation’s initial public offering. Media outlets claim the group covertly owned an investment company and pressured certain shareholders to sell their shares, then made money from subsequent post-IPO sales.
Best known for overseeing the worldwide K-pop phenomenon BTS, HYBE said in an earlier statement that it was fully cooperating with law enforcement officials, including police investigators.
“We will spend the required time to completely show that the IPO was executed in total compliance with laws and rules,” the corporation emphasized.
The Seoul Metropolitan Police Agency refused comment on the raid.
South Korea’s entertainment scene depends on Bang Sihyuk, still HYBE’s biggest investor and essential in turning the business into a global entertainment and technological corporation.
For South Korea’s financial and entertainment industries, where attention on IPO methods and corporate governance is escalating, the probe represents a turning point.
