HYBE Headquarters Raided by Police Amidst Investigation into Chairman's Alleged Misconduct

In a significant development, the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit conducted a raid on HYBE's headquarters in Yongsan District, Seoul. This action is part of an ongoing investigation into allegations against HYBE Chairman Bang Si-hyuk.

On the 24th, HYBE's Chief Legal Officer, Jeong Jin-soo, addressed the company's employees via an internal email. He assured them that the company is fully cooperating with the authorities to clarify the facts. Jeong emphasized, "We will diligently demonstrate that all related activities were conducted in compliance with laws and regulations." He also reassured employees, stating, "We are doing our utmost to prevent any concerns among our team members during this process. Please do not worry about the investigation at the Yongsan office and continue to focus on your respective duties."

The police operation began at 9 a.m. on the 24th, with investigators deployed to HYBE's headquarters and other related locations.

The investigation centers around allegations that Chairman Bang misled existing investors in 2019 by stating there were no plans for an initial public offering (IPO). He is accused of subsequently encouraging these investors to transfer their shares to a private equity fund linked to him.

Contrary to his earlier statements, the IPO did take place, and financial authorities believe that Bang profited approximately 190 billion KRW (around $160 million USD) by receiving 30% of the sale proceeds from the private equity fund.

Reported by Jiye Choi, TenAsia wisdomart@tenasia.co.kr