BTS' parent company HYBE faces police raid over alleged stock manipulation: what we know so far

South Korean entertainment giant HYBE, best known as the label behind global sensation BTS, is currently under investigation for alleged financial misconduct. On Thursday, South Korean police raided HYBE’s headquarters in Seoul as part of a probe into potential stock manipulation and unfair trading practices.

Police Confirm Ongoing Investigation


The Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit confirmed the search and seizure operation at HYBE’s office located in Yongsan District. The investigation reportedly stems from a criminal complaint filed by the Securities and Futures Commission under the Financial Services Commission.

HYBE founder and chairman Bang Si-hyuk is accused, along with three other HYBE executives, of misleading minority shareholders during an investment deal. The claims suggest that the group secretly controlled an investment firm and later gained profit from shares acquired through this undisclosed connection, a potential violation of South Korea's Capital Markets Act.

HYBE Denies All Charges


HYBE has strongly denied any wrongdoing. In a public statement released earlier this month, the company maintained that the stock listing and related activities were conducted according to all legal guidelines. “We will actively cooperate with the authorities,” the statement read, adding that HYBE is committed to proving its compliance with all relevant regulations.

Ongoing Scrutiny for K-pop’s Biggest Label


The investigation comes amid growing criticism of HYBE’s internal practices. Recent issues, such as employee misconduct involving leaked BTS flight details and accusations of insider trading, have added to the company’s challenges. Bang Si-hyuk remains HYBE’s largest shareholder and is widely credited for building BTS into a global brand. However, with the investigation moving forward, HYBE’s reputation and future operations could face serious consequences in the weeks ahead.

As the legal process unfolds, HYBE says it is cooperating fully with law enforcement. The focus now shifts to how the company handles the situation and whether the authorities find evidence of wrongdoing that could impact not just HYBE’s leadership, but its place at the top of the K-pop industry.


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