Investigation initiated by tax authorities due to insider trading suspicions targeting Hybe Corporation's chairman, Bang Si-hyuk.
In a significant development, South Korea's National Tax Service (NTS) and other authorities have initiated a wide-ranging investigation targeting entertainment giant HYBE and its chairman, Bang Si-hyuk. The probe focuses on suspected tax evasion, fraudulent insider trading, and stock market manipulation linked to HYBE's initial public offering (IPO) and subsequent financial dealings.
On July 29, 2025, NTS's Investigation Bureau 4 conducted an unannounced raid at HYBE's headquarters in Seoul to collect documents related to these allegations. The investigation covers offshore tax avoidance, improper transfer pricing in internal transactions, and whether artist earnings were properly reported and taxed. HYBE is among 27 entities and individuals being investigated for stock price manipulation and illicit profits from capital market activities.
Chairman Bang Si-hyuk is under scrutiny for allegedly misleading investors in 2019 by denying IPO plans and then encouraging the sale of shares to a private equity fund linked to him. From this sale, he reportedly gained roughly 190 billion won (~$139 million) from resale profits post-IPO.
This special tax audit follows a prior 2022 regular tax audit at HYBE, which resulted in paying billions in back taxes. Authorities have also highlighted concerns that these unfair market practices have damaged investor confidence in South Korea’s financial markets and contributed to economic sluggishness.
In summary, HYBE is currently facing a multifaceted probe for serious alleged violations involving tax evasion and capital market fraud, with ongoing investigations by the National Tax Service, police, and financial supervisors. The case remains active, and officials have not disclosed final outcomes or specific charges yet.
[1] https://www.reuters.com/world/asia-pacific/south-korean-tax-officials-raid-hybe-entertainment-over-alleged-tax-evasion-2025-07-29/ [2] https://www.bloomberg.com/news/articles/2025-07-30/hybe-entertainment-faces-tax-investigation-over-stock-market-manipulation [3] https://www.nytimes.com/2025/07/30/business/hybe-entertainment-bang-si-hyuk-investigation.html [4] https://www.bbc.com/news/world-asia-61391858
- The investigation concerning HYBE, led by South Korea's National Tax Service and other authorities, extends beyond suspected tax evasion and fraudulent insider trading, also encompassing the areas of business finance, general news, and crime and justice, as allegations of stock market manipulation, offshore tax avoidance, improper transfer pricing, and misleading investors about IPO plans have come to light.
- As the probe into HYBE deepens, questions over the impact on South Korea's financial markets and economy are surfacing, with concerns that the accused activities have potentially damaged investor confidence and contributed to economic sluggishness, drawing attention from both financial and general news outlets, as well as crime and justice branches.
