South Korean Prosecutors Raid HYBE Headquarters Over Insider Trading Allegations

HYBE, the South Korean entertainment agency managing global K-pop acts such as BTS and Tomorrow X Together, is under investigation for insider trading and fraudulent trading allegations. Prosecutors raided HYBE's Seoul headquarters as part of a probe into a HYBE executive accused of illegally profiting roughly $175,000 by trading shares of YG Plus, a subsidiary of competitor YG Entertainment, based on confidential information about HYBE's planned investment. Separately, HYBE's chairman Bang Si Hyuk is being investigated for allegedly misleading investors prior to the company's 2020 IPO by denying plans for a public listing while secretly benefiting from a private equity fund deal, potentially involving hundreds of millions of dollars. The Financial Supervisory Service is reviewing the case, which could violate South Korea's Capital Markets Act. These investigations have intensified scrutiny on HYBE amid its prominence in the global music industry. The allegations highlight concerns over corporate governance and transparency within one of K-pop's largest agencies.