On July 24, South Korean authorities began searching HYBE’s Yongsan headquarters in connection with allegations of financial misconduct involving founder Bang Si-hyuk.
In response, HYBE’s Chief Legal Officer, Jung Jin-soo, issued a company-wide email to calm anxieties and reaffirm the company’s commitment to transparency. “The investigation is currently underway at our Yongsan office,” Jung Jin-soo stated. “HYBE is fully cooperating with the authorities to clarify the facts.”
He further emphasized that all business actions have adhered to legal and regulatory standards. “We will make every effort to demonstrate that our conduct has followed all applicable laws,” he added, assuring staff that they should continue focusing on their roles without fear.
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Division launched the raid following a formal complaint from South Korea’s Financial Supervisory Service. HYBE and Bang Si-hyuk face allegations related to unfair pre-IPO share trading. Specifically, Bang Si-hyuk is accused of misleading investors about IPO plans while offloading shares to a private equity fund established by an associate—a move that allegedly generated personal profits of around ₩400 billion (approx. $290 million USD).
The controversy has triggered internal unrest, with some HYBE employees reportedly concerned about the reputational fallout and the so-called “owner risk” tied to Bang Si-hyuk’s leadership. Jung Jin-soo’s memo appeared to be a direct effort to ease these concerns.
Adding to the complexity, jurisdiction over the investigation has reportedly bounced between the Seoul Southern District Prosecutors’ Office and the Financial Supervisory Service’s special judicial police, leading to confusion over who is leading the probe.
As HYBE navigates this legal storm, the company insists it will fully disclose and resolve all legal uncertainties. Whether this effort will be enough to protect the brand’s reputation and restore internal morale remains to be seen.
Daum
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