South Korean entertainment giant HYBE has asked its employees to remain focused on their duties following a police raid over alleged stock fraud involving company founder Bang Si-hyuk.
In an internal email sent after the July 25 raid on HYBE’s Seoul headquarters, the company encouraged staff not to worry about the ongoing investigation. The message, signed by HYBE’s Chief Legal Officer Jung Jin-soo, said the company is fully cooperating with authorities.
“We will provide a thorough explanation to show that all actions were done in accordance with the law,” Jung wrote. “Please continue to concentrate on your responsibilities.”
HYBE manages top K-pop acts including BTS, NewJeans, LE SSERAFIM, and Tomorrow X Together. The company is currently under scrutiny following allegations that Bang Si-hyuk misled investors during its IPO process.
According to reports, Bang allegedly denied plans for a stock market listing while encouraging investors to sell their HYBE shares to a private equity fund connected to him. Shortly after, HYBE went public, and Bang reportedly benefited from a secret deal with the fund, violating Korea’s Capital Markets Act.
If found guilty and if his financial gain exceeds 5 billion KRW (about $3.64 million), Bang could face a minimum of five years in prison, or life imprisonment.
HYBE has denied wrongdoing. The company earlier stated that all transactions related to the IPO were reviewed legally and carried out lawfully. It also said it is working closely with financial regulators and police to clarify the situation.
The company has not confirmed whether it is conducting an internal investigation.
