HYBE, the organization associated with BTS, is in the news again, but for all the wrong reasons. According to the latest reports, its Seoul headquarters were raided by cops on Thursday as part of an investigation into alleged fraudulent trading.
For the unversed, the entire scam is linked to HYBE’s founder, Bang Si-hyuk.
The Seoul police have also published a brief statement regarding the raid, which reads, “We are conducting a search and seizure at HYBE’s headquarters in Yongsan District.”
What to know about Bang Si-hyuk
At the center of the recent raid and probe is Bang, who is often credited as the mastermind behind BTS’s global success. However, he is currently being investigated for allegedly misleading early investors in the run-up to HYBE’s 2020 initial public offering (IPO).
Local media reports state that this move is said to have helped him secure illicit profits of over 200 billion won (approximately US$146 million).
Bang reportedly told pre-IPO shareholders in 2019 that he had no intention of listing the company on the stock market. This encouraged them to sell their shares to private equity firms.
For the unversed, after those shares were sold, HYBE went public the following year. Investigators also believe that Bang might have struck a private deal to receive a cut of the profits those funds earned after the IPO.
HYBE’s Response to the Allegations
HYBE has denied any wrongdoing on the part of Bang. Earlier this month, the company said in a statement, “We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations.” The organization also added that it would offer “active cooperation” with the investigation.
Unfortunately, the police raid comes at a time of great transition for the K-pop giant. All seven BTS members are currently enlisted in South Korea’s mandatory military service, with a long-anticipated group comeback set for 2025. BTS recently announced plans for a new album and world tour in 2026.
What will happen to BTS’ comeback?
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There’s much speculation on whether BTS will have to delay the much-awaited comeback album and tours. However, nothing is confirmed from HYBE’s side yet.
The BTS members reunited in June 2025 after military service and are still considered one of the most powerful cultural forces of South Korea. They have the record of being the first K-pop act to top both the Billboard 200 and Billboard Artist 100 charts in the U.S.
BTS also remains the most-streamed group in Spotify history. Prior to their mandatory military service, the group generated more than US$4 billion in annual economic impact, which makes for around 0.2% of South Korea’s total GDP.