HYBE Reportedly Under Tax Investigation Following Police Raid Related To Fraud Allegations Against Chairman Bang Si Hyuk

HYBE, embroiled in allegations of fraudulent and unfair trading involving Chairman Bang Si Hyuk, is now reportedly under investigation by the National Tax Service following a police raid.

According to a media outlet on the 29th of July, the 4th Bureau of Investigation at the Seoul Regional Tax Office dispatched personnel to HYBE’s headquarters in Yongsan, Seoul, to conduct an on-site tax probe and seize necessary documents.

Earlier that day, the National Tax Service held a briefing announcing that they had launched tax investigations into 27 individuals and entities suspected of stock market manipulation and tax evasion related to unfair practices. It has been reported that HYBE is among those targeted.

This marks the first tax investigation into HYBE in three years, the last being in June 2022. At the time, the Seoul Regional Tax Office conducted a regular audit and imposed tens of billions of won [tens of millions of dollars] in additional taxes.

Meanwhile, on July 24, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency raided HYBE’s headquarters and other locations.

Chairman Bang and three current HYBE executives are suspected of deceiving existing investors by claiming there were no plans to go public during HYBE’s listing process. They allegedly made investors sell their shares and profited approximately 200 billion won [over $143 million] in listing gains.

What do you think of this?

Source: (A)