The Seoul headquarters of HYBE Corporation, the entertainment agency managing the globally renowned K-pop group BTS, was raided by South Korean police on Thursday, July 24, 2025. The raid, executed by the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency, is part of an ongoing investigation into alleged unfair stock trading practices involving HYBE's founder and chairman, Bang Si-hyuk.
The investigation stems from accusations that Bang Si-hyuk and other HYBE executives misled early investors before the company's initial public offering (IPO) in October 2020. Bang is accused of persuading shareholders to sell their stakes to a private equity fund purportedly controlled by his associates. It's alleged that Bang and the other executives profited from these share sales after the company went public. Local reports estimate that Bang gained around 200 billion won (approximately $146 million) through this process. Other reports indicate he may have profited nearly 400 billion Korean won (approximately $291.3 million).
The Securities and Futures Commission (SFC) filed a formal complaint against Bang, accusing him of violating the Capital Markets Act through unfair trading practices. The Seoul Southern District Court issued a search and seizure warrant on Wednesday, July 23, marking the first time authorities have executed a warrant in connection with the case. The police applied for a search warrant on July 17, targeting HYBE's Yongsan office and other locations.
HYBE has denied any wrongdoing and pledged full cooperation with the authorities. In a statement released earlier in July, the company stated that it would "dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations". HYBE reiterated its commitment to demonstrating that the IPO was conducted in full compliance with the law.
The case has drawn considerable attention, especially as all seven members of BTS are expected to complete their mandatory military service and make a comeback next year. The investigation comes after months of investigative work by Seoul’s Metropolitan Police Agency. Last week, the agency requested that the prosecution transfer the case to them, hoping to avoid overlapping investigations from a South Korean financial regulator.
Bang Si-hyuk, also known as "Hitman" Bang, founded Big Hit Entertainment in 2005, which later became HYBE Corporation. He is the largest shareholder in HYBE and is widely recognized for his role in transforming BTS into a global phenomenon. Forbes cites Bang's real-time net worth at $2.4 billion as of July 24, 2025.
The controversy surrounding the alleged unfair trading practices adds to the challenges HYBE has faced recently, including employee misconduct, such as leaking BTS's flight details, and insider trading accusations. These issues threaten to tarnish the company's carefully cultivated public image. HYBE maintains it will take the necessary time to prove the IPO was carried out in full compliance. The coming weeks will be critical for HYBE as the police investigation intensifies and public scrutiny grows.
