The Financial Supervisory Service (FSS) headquarters in Seoul. Photo Credit: Wikiwater2020
The trading-focused investigations into Hybe founder Bang Si-hyuk and other execs look to be intensifying. According to regional reports, authorities have conducted a raid of the K-pop giant’s Seoul headquarters.
As things stand, we don’t know the precise extent of these investigations. However, it’s been nearly six months since local media first linked Bang to scrutiny concerning alleged private-equity side deals executed ahead of his company’s 2020 IPO.
Evidently, this scrutiny isn’t letting up. Yesterday, we broke down the status of the reported allegations – and explored the situation’s possible impact on BTS’ full-group comeback.
Long story short, the Financial Supervisory Service is reportedly considering an expedited referral of the Bang case to prosecutors. And a separate police investigation into the same matter is said to be ongoing as well.
(Regarding all the “reportedly” and “is said to be” usages: Technically, Bang and the appropriate authorities have yet to comment publicly on the subject. Related details are trickling out through anonymous sources via South Korean outlets.)
Not coincidentally, information about the initially mentioned Hybe HQ raid emerged on the heels of the media-fueled update on Bang’s case.
According to the Korea Times, Seoul Southern District prosecutors searched Hybe’s office in connection with insider-trading allegations against a different exec.
The higher-up, whose name remains undisclosed, is reportedly accused of pocketing roughly $175,000 in profits by capitalizing on knowledge of Hybe’s YG Plus investment plans in 2021. Unsurprisingly, the latter entity’s shares (KRX: 037270) spiked in value after Hybe purchased almost 18% of the business.
Back to the allegations against Bang, per the Korea Herald, the Seoul Metropolitan Police Agency has submitted a distinct search-warrant request to prosecutors over the IPO-fraud claims.
And while it probably doesn’t need saying, it’ll be worth keeping an eye out for this comparatively important raid and any adjacent revelations. Also more or less implied is that Hybe is cooperating with the investigations, regional outlets summed up.
In the bigger picture, though the situation appears serious, it certainly isn’t without precedent. During 2024 alone, authorities arrested Kakao’s billionaire founder on stock-manipulation charges stemming from the SM Entertainment takeover battle – after raiding the main offices of both SM and Kakao in 2023.
Meanwhile, YG founder and exec Yang Hyun-suk was indicted last year for allegedly failing to declare a pair of high-end wristwatches upon returning to Korea a decade prior.
Bearing all that in mind, Hybe investors don’t seem too bothered at present. Shares (KRX: 352820) dipped about 2% during today’s trading but, at $193/₩266,000 a pop, are still up approximately 36% since 2025’s start.
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