Prosecutors have recently searched the headquarters of HYBE during the investigation into an employee of the entertainment corporation.
According to the legal community, the Seoul Southern District Prosecutors' Office is investigating allegations that an employee surnamed A of HYBE used undisclosed information to gain illicit profits amounting to hundreds of millions of won. A is accused of acquiring 240 million won in YG Plus shares after obtaining prior information that HYBE (then Big Hit Entertainment) would invest in YG Plus in January 2021. The Seoul Southern District Prosecutors' Office searched HYBE's headquarters recently while investigating the matter.
Separately, the Seoul Metropolitan Police Agency's Severe Crime Investigation Unit also applied for a search warrant for HYBE the day before. Police are currently investigating allegations of fraudulent and improper transactions against Bang Si-hyuk, chairman of HYBE. Bang is accused of promoting the company's listing after telling HYBE shareholders at the end of 2019 that there were no plans for an IPO.