At approximately 9 AM on July 24 KST, the Financial Crime Investigation Unit of the Seoul Metropolitan Police showed up at HYBE headquarters in Yongsan, Seoul, to raid the building and conduct a search and seizure operation.
The operation was conducted as a part of the ongoing investigation into suspicions of fraudulent stock trading by the corporation's chairman, Bang Si Hyuk, in October of 2020. The chairman is thus far facing allegations of obtaining shares held by former HYBE shareholders using misinformation, as well as of setting up private equity funds with payouts dependent on HYBE's IPO success.
Earlier this month, the Korean Financial Securities Commission referred Bang Si Hyuk to prosecution on suspicions of making unjust profits totaling 400 billion KRW (~ $290 million USD) through unfair trading. However, according to a report by Yonhap News on July 24 KST, Bang's profit amount is suspected to be closer to 190 billion KRW (~ $138 million USD).
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