Hybe tax probe intensifies as South Korean authorities expand their investigation into the entertainment giant’s financial activities. The National Tax Service has launched a new inquiry focusing on potential stock manipulation and tax evasion.
Tax officials visited Hybe’s headquarters in Seoul earlier this week. They collected documents and financial records as part of the investigation. The 4th Bureau of Investigation at the Seoul Regional Tax Office is handling the probe, specializing in irregular audits.
This latest Hybe tax probe follows a broader sweep that includes 27 individuals and entities. According to the National Tax Service, the total suspected tax evasion uncovered in this effort is about 1 trillion won, or approximately 718.7 million dollars.
In a public briefing, the agency warned that unfair practices in the financial market are damaging investor confidence. Officials cited these disruptions as a key reason behind South Korea’s so-called “Korea Discount” and the country’s sluggish economic growth. They pledged to investigate all cases linked to capital market instability.
This marks the second known tax investigation into Hybe. The company previously faced a regular audit in 2022, which ended in a multi-billion-won penalty. Unlike the earlier case, this current Hybe tax probe stems from alleged capital market misconduct.
Meanwhile, Hybe is also the subject of a separate police investigation. Authorities are examining whether Chairman Bang Si-hyuk misled investors about the company’s IPO plans in 2019. He allegedly told investors there were no plans for a public offering, only to proceed with one later.
Investigators say Bang encouraged shareholders to sell their stakes to a private equity fund connected to him personally. After the IPO, he reportedly took 30 percent of the fund’s profits, earning about 190 billion won in the process.
Hybe has not issued any official statement regarding either investigation.
In conclusion, the Hybe tax probe reflects South Korea’s broader effort to improve market transparency and enforce financial regulations. With investor confidence at stake, authorities are expected to move forward with urgency and thoroughness.
