A major stock fraud probe has intensified in South Korea as police raided Hybe’s headquarters in Yongsan, Seoul, early Thursday morning. The financial crime unit of the Seoul Metropolitan Police Agency led the operation, which began at 9 a.m., as part of an ongoing investigation into alleged misconduct by Hybe chairman Bang Si-hyuk.
Authorities are investigating claims that Bang engaged in stock manipulation before Hybe’s initial public offering in October 2020. According to police, he allegedly misled early investors and gained approximately 400 billion won ($292.7 million) through improper means. This stock fraud probe marks the most serious legal challenge to date for the executive widely credited with launching BTS to global fame.
Officials from the Seoul Southern District Court granted the search and seizure warrant on Wednesday. This move represents the first time police have obtained and executed a warrant related to the case. Investigators believe Bang may have violated the Capital Markets Act by engaging in unfair trading practices.
Although police entered Hybe’s offices, they did not immediately disclose what materials were seized. Both police and Hybe offered limited public statements. A police spokesperson said, “No specific details can be confirmed at this time.” Meanwhile, Hybe officials said the company had “no official comment” on the situation.
The search followed a criminal complaint filed by the Securities and Futures Commission, a division of the Financial Services Commission, on July 16. That complaint accused Bang of violating capital market regulations and prompted the court to approve the latest warrant.
Police had previously attempted to secure warrants on April 30 and May 28. However, prosecutors denied both requests due to insufficient evidence. The revised warrant gained approval after the formal complaint, giving the stock fraud probe new momentum.
Hybe’s stock performance and public image may face increased scrutiny as the investigation unfolds. The case also signals heightened regulatory pressure on South Korea’s entertainment industry. Authorities appear determined to hold corporate leaders accountable amid rising concerns about transparency and investor protection.
As the stock fraud probe continues, industry watchers await further developments that could impact Hybe’s leadership and reputation.
