BTS’ Company HYBE And Its Founder Bang Si Hyuk Currently Under Investigation For Financial Fraud
The police have been denied a second request to get a warrant issued for searching HYBE's headquarters.
HYBE chairman and founder Bang Si Hyuk is currently in hot water for financial fraud allegations. The latest development in this matter is that South Korean prosecutors have again denied a police request to search the media corporation’s headquarters. The police request comes as part of an ongoing probe in investigation into potential securities fraud against HYBE and Si Hyuk.
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Police Were Denied A Search Warrant Against Bang Si Hyuk And HYBE
The Seoul Southern District Office did not offer any explanation or statement for denying the request to issue a search warrant. This is the second instance when the police have been denied from holding an investigation into HYBE’s headquarters. The first request was issued by the police in April but was turned down. They then collected more substantial evidence and reviewed financial records for their second submission. However, this was also met with rejection.
The investigation is into Bang Si Hyuk and HYBE and their 400 billion KRW (approximately 293 million USD). The transaction happened in 2019, a year before HYBE went public. The Korea Economic Daily then uncovered documents that suggest that Bang Si Hyuk allegedly encouraged early-stage HYBE shareholders to sell their stakes.
Bang Si Hyuk also failed to disclose that he received 30% commission from this. And the entire move earned him billions of won while the investors did not know anything. Bang’s profits also did not appear on HYBE’s financial records in their disclosures. Since then, multiple shareholders have stepped forward and alleged that Bang Si Hyuk tried to downplay their plans for an IPO. He further convinced them to sell their own shares. The investors say that they were unaware of Bang’s actions.
Updates On The Case Against HYBE
The case is currently being looked into under South Korea’s Capital Market Act. The act demands public disclosure of all financial arrangements made for the shareholders and prohibits the use of insider information.
If convicted by the prosecutors, Bang Si Hyuk can be charged with securities fraud, and the HYBE founder may be sentenced to life in prison.
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First Published: June 16, 2025 4:14 PM
