BTS’ parent company HYBE sends confidential email to staff after raids at headquarters in Seoul

The mail said that HYBE will "provide a thorough explanation". It added that the company is “doing everything we can”.

After Seoul Police conducted a search and seizure operation at the headquarters of HYBE, the company's chief legal officer, Jung Jin-soo, reportedly sent an internal email to employees. As per an Allkpop report, Jin-soo urged the staff to stay focused and calm. This comes after allegations of fraudulent trading.

Bang Si-hyuk founded HYBE nearly two decades ago.

HYBE has a message for its staff after police raid

The mail said that HYBE will "provide a thorough explanation". “The company is actively cooperating with the authorities to clarify the facts. We will provide a thorough explanation to demonstrate that all matters were handled in compliance with laws and regulations.”

It further read, “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.”

What are the allegations against HYBE, Bang Si-hyuk

It all started with the issuance of a search warrant on July 17. On Thursday, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency conducted a search and seizure operation at the headquarters of HYBE in Yongsan, Seoul.

The raid followed a referral made after the Securities and Futures Commission under the Financial Services Commission filed a criminal complaint against HYBE founder and chairman, Bang Si-hyuk, accusing him of violating the Capital Markets Act by engaging in unfair trading practices.

Si-hyuk is accused of misleading investors, including venture capital firms, in 2019 by falsely claiming that HYBE didn't have plans to go public. He then allegedly transferred the company shares to a special purpose company (SPC), which was created by a private equity fund formed by HYBE executives.

Later, the SPC sold the shares and they reportedly shared 30% of the profit with Si-hyuk. The move was based on a prior shareholder agreement. Investigators think that Si-hyuk's personal gain from the deal is at around 120 billion KRW (approximately $86 million).