Seoul police raided HYBE’s headquarters in Yongsan District on Thursday in connection with alleged fraudulent trading allegations involving the company’s founder, Bang Si-hyuk.
Investigators stated that Bang Si-hyuk is under investigation for allegedly misleading early investors to gain illicit profits from HYBE’s 2020 initial public offering (IPO).
Police conducted a search and seizure at HYBE’s headquarters as part of the investigation.
Local reports suggest that Bang allegedly gained approximately 200 billion won (US$146 million) through the IPO process.
HYBE has denied any wrongdoing by Bang Si-hyuk, the figure behind the global success of the K-pop group BTS.
The investigation into the alleged fraudulent trading continues, and authorities have not disclosed further details.
HYBE has yet to release an official statement on the matter beyond denying the allegations against its founder.