HYBE Faces Fraud Probe as BTS Comeback Nears

HYBE, the agency behind BTS, is under investigation by South Korea’s Financial Supervisory Service and police for alleged fraudulent trading and unfair practices related to its 2020 IPO, with Chairman Bang Si-hyuk accused of misleading early investors and arranging undisclosed profit-sharing deals resulting in roughly 400 billion won ($290 million) in gains. The probe has caused HYBE’s share price to drop as much as 6.8%. Authorities also raided HYBE’s headquarters in connection to a separate insider trading investigation involving another executive. Both HYBE and regulatory agencies have neither confirmed nor denied all details, but acknowledge ongoing investigations, which may soon be referred to prosecutors. The case highlights concerns about transparency and governance in South Korea’s entertainment sector. The situation has drawn additional attention as BTS prepares for a full-group reunion, worrying fans about their comeback plans.