BTS’ parent company HYBE sends confidential email to employees after police raids at company headquarters for $86M IPO scandal

BTS’ parent company HYBE sends confidential email to employees after police raids at company headquarters for $86M IPO scandal

Tensions are running high at HYBE Corporation, the powerhouse behind global K-pop sensations like BTS, as it becomes the centre of a deepening legal controversy. The company, already under public scrutiny, is now facing intense pressure after a police raid was conducted on July 17 at its headquarters in Yongsan, Seoul — including the private office of its influential chairman, Bang Si-Hyuk.

In the wake of the high-profile raid, HYBE's Chief Legal Officer, Jung Jin-Soo, issued a confidential internal email to employees, addressing the ongoing investigation. The memo, intended to assure and stabilize the workforce, emphasised the company's full cooperation with authorities.

"The company is actively cooperating with the authorities to clarify the facts," Jung stated in the email. "We will provide a thorough explanation to demonstrate that all matters were handled in compliance with laws and regulations."

Attempting to calm rising internal anxiety, Jung further urged employees to remain focused.

“We are doing everything we can to prevent this situation from causing unnecessary concern among our team. Please do not be overly worried about the investigation at the Yongsan office and continue to concentrate on your individual responsibilities,” the memo read.

Notably, the internal communication stopped short of issuing an apology or taking responsibility, instead projecting an image of calm and continuity amid the brewing crisis.

The raid is part of a broader, multi-agency investigation into alleged fraudulent trading activities involving HYBE's top executives. Chairman Bang Si-Hyuk is at the center of the controversy, facing accusations of misleading early investors back in 2019 by claiming that HYBE had no plans to go public. Authorities allege that he subsequently transferred shares to a special purpose company (SPC) linked to a private equity fund involving HYBE executives. This SPC later sold those shares after HYBE’s IPO, reportedly earning Bang approximately 120 billion KRW (around $86 million), with profits shared through a pre-arranged shareholder agreement.

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This probe is being jointly conducted by the police, prosecutors, and the Financial Supervisory Service, following an earlier raid on the Korea Exchange on June 30. That operation aimed to obtain documents linked to HYBE’s IPO screening process.

As the investigation continues to unfold, the company and its leadership are under intense scrutiny from both the public and the financial community.