HYBE, the powerhouse behind global K-pop acts like BTS, TXT, Seventeen, found itself at the center of controversy on July 24 after Seoul police officers stormed the company’s headquarters in Yongsan. This surprise raid was part of an investigation into allegations that the agency’s chairman, Bang Si‑hyuk, was involved in stock fraud tied to HYBE’s initial public offering.

Authorities from the Seoul Metropolitan Police’s financial crimes unit began searching the building in the early hours, seizing documents and digital records they believe could be key evidence. The investigation stems from a complaint filed by the Financial Supervisory Service, accusing Bang of misleading investors and making unfair gains before HYBE went public in 2020.

Back in 2019, Bang reportedly told early investors that HYBE had no intention of listing on the stock exchange. Trusting his word, many sold off their shares. But shortly after, HYBE pushed ahead with an IPO in 2020, and Bang is said to have walked away with hundreds of billions of won in profit, money those early investors never saw.

Investigators believe Bang used a private investment vehicle, possibly with the help of former employees, to secretly benefit from the listing while keeping others in the dark. Additionally, the alleged scheme could amount to a serious breach of South Korea’s financial laws.

This case has been quietly building for months.

In May, South Korea’s financial regulators handed over their findings to prosecutors. By July 17, police had obtained search warrants. On July 24, they moved in and launched the raid. Just days earlier, the Seoul Southern District Prosecutors’ Office granted the FSS full authority to dig deeper into the matter, giving the case even more weight.

In a short statement, HYBE said it is fully cooperating with the authorities and maintains that it has done nothing illegal. In addition, the company emphasized that its IPO process followed all necessary procedures and that it will continue to work with investigators to resolve the issue.