Prosecutors Conduct A Raid On HYBE Headquarters As Part Of An Insider Trading Investigation.

On May 29, legal sources said that South Korean authorities executed a search and seizure operation at the headquarters of entertainment conglomerate HYBE. The Seoul Southern District Prosecutors’ Office is investigating a HYBE official, referred to as Mr. A, on allegations of generating criminal gains through the use of concealed information. Authorities suspect that Mr. A acquired shares of YG Plus in early 2021 after receiving prior knowledge of HYBE’s (formerly Big Hit Entertainment) intention to invest in the company. He is purported to have generated roughly 240 million KRW (nearly $175,000) in profit from the sale. On May 28, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency submitted a request for a search warrant to investigate HYBE. The police are investigating claims of fraudulent trading related to HYBE’s chairman, Bang Si Hyuk.