In a dramatic development shaking the K-pop industry’s corporate world, the Seoul Metropolitan Police have obtained an expansive search warrant lasting almost a full month—until August 16th—to conduct thorough inspections of HYBE Corporation’s headquarters located in Yongsan District, Seoul. The warrant allows searches to be conducted even before dawn and after sunset, an exception highlighting the urgency and gravity of the probe. This marks a vigorous step amid allegations that Hybe’s Chairman Bang Si-hyuk and insiders orchestrated deceptive stock trades before the company’s IPO in 2019. Bang Si-hyuk is accused of misleading early investors, including venture capitalists, by denying plans for public listing, then selling shares through a special-purpose vehicle connected to himself and related private equity funds.
The search warrant’s scope is notably broad, covering ‘departments regardless of title’ that may hold evidence—from the chairman’s office and secretary’s office to financial, accounting, and legal teams. This expansive authorization reflects both the complexity of HYBE’s corporate structure and the police’s commitment to uncovering all relevant documents and materials. The Seoul Police Financial Crimes Unit initiated the raid on July 24th, and while the search period is extensive, authorities stated the actual search at HYBE headquarters has concluded. Contextually, this strict investigation follows President Lee Jae-myung’s recent strong statements emphasizing severe punishment for stock market manipulation, reinforcing a zero-tolerance governmental stance.
Bang Si-hyuk, revered globally as the genius producer and founder behind BTS and HYBE’s expansive K-pop empire, now faces serious legal scrutiny that could affect the company’s reputation and the industry’s trust in its fast-expanding global business model. HYBE, known for managing key acts like BTS, NewJeans, Enhypen, and other notable artists, operates multiple labels under its umbrella, contributing significantly to the Korean Wave economy. Despite these achievements, the ongoing investigation, fueled by alleged pre-IPO misconduct, pits the corporate leader at the center of controversy. Industry insiders note that the police’s aggressive timeline appears motivated by competing interests, aiming to assert investigative dominance before other agencies like the Financial Supervisory Service and prosecutors. However, police maintain the wide-ranging search warrant is not unusual under the circumstances and emphasize their focus remains strictly on enforcing capital market laws.
This crackdown illustrates increasing governmental pressure on conglomerates within the Korean stock market to maintain transparency and ethical practices, especially amid rapid globalization and intense investor scrutiny. As the investigation unfolds, it could set a precedent for corporate governance standards in K-pop’s business realm. Fans and market observers alike are watching closely, given Bang Si-hyuk’s instrumental role in reshaping K-pop’s global influence and HYBE’s pivotal place in the industry’s future.
