HYBE’s headquarters in Yongsan-gu, Seoul, recently faced a search and seizure operation by the Seoul Southern District Prosecutors’ Office.
This action is part of an ongoing investigation into a former HYBE executive suspected of making hundreds of millions of won in illicit profits through the use of undisclosed information.
According to legal sources on May 29, the probe centers on allegations that Executive A profited approximately 240 million won. This was reportedly achieved by purchasing stocks in January 2021 after learning that HYBE (then Big Hit Entertainment) was planning to invest in YG Plus.
In response to the prosecution’s search and seizure, a HYBE official informed Xports News on May 30 that the company
We cooperated with the investigative authorities’ request to provide data regarding the actions of a former employee who resigned.
In a separate but concurrent development, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit applied for a search and seizure warrant for HYBE’s headquarters on May 28. This warrant, submitted to the Seoul Southern District Prosecutors’ Office’s Securities Crime Joint Investigation Unit, stems from another investigation.
Police are reportedly looking into suspicions that Chairman Bang Si Hyuk misled HYBE investors in 2019. It’s alleged that he falsely claimed there were no plans for an initial public offering (IPO) and subsequently encouraged them to sell their shares to a private equity fund established by an acquaintance.
The police are accelerating their investigation into HYBE Chairman Bang Si Hyuk. This probe focuses on alleged fraudulent illicit transactions. Authorities have reportedly already secured statements from individuals involved and gathered significant circumstantial evidence. This evidence collection occurred even before the Financial Supervisory Service became involved, and it ultimately led to the police applying for a search and seizure warrant.