Authorities Initiate Surprise Raid At HYBE Headquarters Amid Stock Manipulation Allegations

The third search warrant requested by police to investigate HYBE has finally been approved.

On July 29, K-pop entertainment company HYBE, home to top groups like BTS, SEVENTEEN and TXT, was suddenly searched by investigators from the Seoul Regional Tax Office’s Investigation Bureau 4. The investigators showed up unannounced and began collecting data as a part of their ongoing investigation against HYBE and Bang Si Hyuk for insider trading and fraud charges. Read on to know more. 

Surprise Investigation Conducted At HYBE

The investigation against HYBE dives into stock market manipulation and suspected illegal transactions involving HYBE and its chairman, Bang Si Hyuk. The operation launched as an initiative by Korea’s National Tax Service, which announced a targeted probe into 27 individuals and corporations. Among the listed corporations, HYBE ranked first in the entertainment sector of the list. 

This is not the first time that the company has come under scrutiny. In 2022, a tax audit was conducted by Bureau 1, resulting in billions of won in back taxes. However, the current ongoing allegations mark more serious allegations. The focus is now not only on accounting practices to include fraudulent financial dealings and coordinated stock manipulation. Some of these charges are believed to have occurred over the last two years.

Adding to the charges, judicial police officers from the Financial Supervisory Service, acting under both the police and public prosecutors, have also launched a simultaneous investigation into Bang Si Hyuk himself. Reports say that the police have been trying to obtain a search warrant against Bang Si Hyuk and HYBE since December last year; however, their requests were denied. Their third request was finally approved this month, making way for today’s surprise raid. 

Also Read: HYBE Staff Caught In Insider Trading Scandal, Sold Shares Illegally Before BTS’ Hiatus Announcement

While HYBE hasn’t released an official statement to the public addressing the ongoing investigation, this case could prove critical for the South Korean entertainment scenario, as it will HYBE is home to some of the biggest groups in K-pop.  The company’s CLO, however, did issue a statement to HYBE’s staff asking them not to panic and that the company is doing everything to cooperate with the authorities. 

Also Read: HYBE Chief Legal Officer Breaks Silence On Police Raid And Reassures Company Staff In New Statement

 

First Published: July 29, 2025 2:49 PM