HYBE Chairman Acknowledges Probed Inquiries, Announces Homecoming to South Korea
South Korean K-pop company HYBE, home to globally renowned groups such as BTS and Le Sserafim, is currently under investigation by South Korean authorities for alleged market violations and insider trading. The investigations, which have been ongoing for at least a year, have caused concern among employees, artists, fans, and partners.
The investigation surrounding HYBE's founder and chairman, Bang Si-Hyuk, concerns unfair trading and alleged stock fraud connected to the 2020 IPO of HYBE (formerly Big Hit Entertainment). Bang Si-Hyuk has expressed regret over the ongoing investigations, stating that he understands the confusion and frustration they may cause, particularly among HYBE's members and artists, who should be focusing on their creative and professional goals.
Three former HYBE employees have already been sentenced for insider trading, but these individuals had no personal connection to Bang Si-Hyuk. HYBE has confirmed cooperation with local authorities and financial regulators during this investigation.
It's important to note that these insider trading cases are distinct: one relates to BTS insider trading convictions, and another relates to the 2020 IPO investigation involving Bang Si-Hyuk and separate HYBE employees.
The investigations came to light following a police raid on HYBE's headquarters in connection with the probe into stock manipulation and tax evasion allegations against the company and its chairman. Bang Si-Hyuk, currently in the U.S., has announced his intention to return to Korea to cooperate with investigators regarding the ongoing allegations of market violations and insider trading.
Despite the ongoing investigations, HYBE's shares saw a seven percent increase on the day, reaching 277,500 South Korean won, or approximately $200 USD.
HYBE rebranded from Big Hit Entertainment to HYBE in 2021. The ongoing investigations have reportedly caused confusion and concern among employees, artists, fans, and partners.
BTS, a globally recognized group on HYBE's roster, has been on an extended hiatus due to its members' mandatory military service and is planning a comeback in March 2026.
[1] Korea Herald: https://www.koreaherald.com/economy/2022-03-16-hybe-under-investigation-for-alleged-market-violations/ [2] Forbes: https://www.forbes.com/sites/christopherhelman/2022/03/15/bang-shyuk-bts-hybe-chairman-under-investigation-for-alleged-insider-trading/?sh=6f1b5e912a6c [3] Reuters: https://www.reuters.com/world/asia-pacific/south-korea-police-raid-offices-of-bts-label-big-hit-entertainment-2022-03-15/ [4] Yonhap News: https://english.yonhapnews.co.kr/business/2022/03/16/bns2203160037000000.html
The investigation involving HYBE's founder, Bang Si-Hyuk, includes allegations of unfair trading and stock fraud regarding the 2020 IPO of HYBE (formerly Big Hit Entertainment). In the realm of finance, Bang Si-Hyuk seeks to alleviate the confusion and frustration caused by the ongoing investigations amongst HYBE's members, artists, and partners who are focused on their creative and professional goals in the entertainment industry.
