HYBE Under Fire: Shocking Raid Uncovers Alleged BTS Agency Fraud
HYBE Under Investigation for Alleged Fraudulent Trading
Seoul police conducted a search and seizure at HYBE’s headquarters in Yongsan District on Thursday, according to a brief statement from the city’s police department.
Key Allegations Against Founder Bang Si-hyuk
- Bang, the creator behind K-pop superstars BTS, is accused of misleading early investors to secure illicit gains from the company’s 2020 initial public offering (IPO).
- Investigators claim Bang extracted approximately 200 billion won (US$146 million) through the alleged scheme.
- The founder allegedly deceived pre‑IPO shareholders in 2019 by claiming he had no plans to take HYBE public, while secretly encouraging them to sell shares to private equity funds.
- After HYBE went public in 2020, the 52‑year‑old is alleged to have struck a private deal to receive a share of the profits generated by the shares’ sale.
HYBE’s Official Statement
HYBE denied any wrongdoing, stating:
“We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations.”
“We pledge active cooperation with authorities to get to the bottom of the case.”
Background: BTS’s Global Impact
- BTS has become the most‑streamed group on Spotify.
- The group holds the record as the first K‑pop act to top both the Billboard 200 and Billboard Artist 100 charts in the United States.
- Before mandatory military enlistment, BTS generated more than 5.5 trillion won ($4 billion) in annual economic impact, according to the Korea Culture and Tourism Institute.
- That contribution accounts for roughly 0.2 percent of South Korea’s total GDP.
Military Service and Upcoming Comeback
All seven BTS members completed mandatory military service and are preparing for a 2026 comeback. HYBE announced a new album and world tour scheduled for that year, targeting a record‑breaking resurgence.
Despite public debate over potential exemptions—often granted to Olympic medalists and classical artists—pop stars do not qualify under South Korean laws. Consequently, the members enlisted individually, beginning in late 2022.
