HYBE Founder Bang Si-Hyuk's Residence Raided, Agency Steps Up Probe In Unfair Trading Case

In a big development in the alleged unfair trading case involving HYBE founder Bang Si-Hyuk, it has now been reported that the Financial Supervisory Service’s (FSS) Special Judicial Police for Capital Markets recently conducted raids at Si-Hyuk’s properties.

As reported by E-Today, a two-day search and seizure operation was recently conducted at Bang’s home and office. The search took place between December 17 and 18 and was conducted as part of a comprehensive investigation into Bang’s alleged fraudulent trading under the Capital Markets Act. More details are awaited.

Bang Si-hyuk, founder and chairman of Hybe – the South Korean entertainment company which handles BTS, has been accused of indulging in fraudulent and unfair trading under the Capital

Markets Act. He has been summoned and questioned by the agency multiple times in connection to the case.

The financial watchdog is investigating Bang over allegations that he misled investors by denying any plans for an IPO. With this, he encouraged them to sell their HYBE shares to a private equity fund (PEF) linked to him. This was around the time when HYBE was secretly preparing to go public. Therefore, when the company eventually did file for an IPO, Bang reportedly benefited through a 30% return-sharing deal with the PEF, a transaction not disclosed during the IPO process.

This means that if found guilty and the gains exceed 5 billion KRW (approximately $3.64 million), Bang could face life imprisonment or a minimum of five years in prison.

Previously, Bang also wrote an email to the employees of his company and assured them that he would fully cooperate with the investigators. “Over the last year, much has been said and written about me in the press. Increasingly, I believe these events are causing confusion and concern for you, as well as our artists, fans, and partners,” the email read, as reported by Forbes.

“I will fully and transparently work with investigators and put these allegations to rest,” Bang said and then added, “In particular, I feel a deep sense of regret knowing that our members and artists, who should be focused solely on their creative and professional goals, might be suffering because of this situation … I understand how my absence may have contributed to confusion and frustration.”

For the unversed, Bang Si-Hyuk’s HYBE manages some of the biggest names in K-pop, including BTS, Tomorrow X Together, LE SSERAFIM, NewJeans, BOYNEXTDOOR, and KATSEYE.