Police Search Korea's HYBE Building, In The Aftermath Of Alleged IPO Fraud Bang Si Hyuk

The HYBE (HYBE) logo

JAKARTA - The Seoul Police announced the search and inspection of the HYBE office in the Yongsan area, Seoul on Thursday, July 24. This is related to the alleged case of an initial public offering (IPO) fraud committed by Bang Si Hyuk.

Director of HYBE, Bang Si Hyuk is suspected of violating the Capital Market Law by providing misinformation to investors of his label in 2019.

In that year, Bang Si Hyuk was said to have made false claims that their label had no plans for an IPO and became public. He and three former HYBE officials.

Investors then sold shares to special companies established by private equity and financed by HYBE executives. However, in contrast to his statement, HYBE began to go public and the equity sold stocks so that Bang Si Hyuk received a profit of up to 30 percent of the shares.

The Capital Market Investigation Committee suspects that Bang Si Hyuk has made a profit of up to 200 billion won. The police then issued a search and confiscation letter against the central HYBE office.

"We plan to actively conduct an investigation and fully disclose this case. Every violation will be investigated and punished," said the Financial Commission.

HYBE is a music label that houses several labels from Bang Si Hyuk. Some of these labels are BIGHIT which houses BTS, TXT, Lee Hyun, Belift Lab which houses ENHYPEN and ILLIT, Source Music oversees LE SSERAFIM.

Then there is PLEDIS who is the agency SEVENTEEN, TWS, Hwang Min Hyun, KOZ oversees Zico and BOYNEXTDOOR, as well as ADOR and &TEAM.