HYBE’s CLO Jung Jin Soo urges calm among employees as police raid company headquarters

On the morning of July 24, 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.

This action follows the issuance of a search warrant on July 17, targeting Chairman Bang Si Hyuk and HYBE’s offices, as authorities step up their investigation into allegations of fraudulent trading.

Chairman Bang is suspected of misleading early investors, including venture capital firms, in 2019 by falsely claiming that HYBE had no plans to go public. He then allegedly transferred company shares to a special purpose company (SPC) created by a private equity fund formed by HYBE executives. After HYBE’s IPO, the SPC sold the shares and reportedly shared 30% of the profit with Bang based on a prior shareholder agreement. Investigators estimate Bang’s personal gains from the deal at around 120 billion KRW (approximately $86 million).

The case is being investigated jointly by police, prosecutors, and special judicial officers from the Financial Supervisory Service. In a related move, authorities previously raided the Korea Exchange on June 30 to obtain documents related to HYBE’s IPO screening process.

Amid growing concerns, HYBE’s Chief Legal Officer (CLO) Jung Jin Soo sent an internal email to employees urging them to stay focused and calm. “The company is actively cooperating with the authorities to clarify the facts,” Jung stated. “We will provide a thorough explanation to demonstrate that all matters were handled in compliance with laws and regulations.”

He added, “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.”

Jung’s message did not express an apology but instead served as a call for stability and unity within the organization.

Meanwhile, this is not the first time such allegations have surfaced. In November of last year, HYBE responded to similar claims, stating through a public disclosure: “The shareholder agreement in question was shared with underwriters during the IPO process and reviewed in accordance with relevant laws. We believe there was no legal violation involved in the company’s listing.”