HYBE is reportedly under a tax investigation by the South Korean National Tax Service.
Field News reported on July 29 that the Seoul Regional Tax Office’s Investigation Bureau 4 deployed agents to HYBE’s headquarters in Seoul to conduct an on-site preliminary investigation and seize necessary documents for the tax probe.
>> Bang Si Hyuk and 3 HYBE Executives to Be Criminally Charged
Earlier that morning, the National Tax Service announced in a briefing that it had launched a surprise tax investigation into 27 individuals suspected of tax evasion through stock market manipulation and unfair practices. HYBE is reportedly among those targeted in this investigation.
This tax investigation comes just three years after HYBE’s previous probe in June 2022, when the Seoul Regional Tax Office’s Investigation Bureau 1 conducted a regular tax audit on the company, resulting in billions of won in additional taxes.
Meanwhile, police investigating Chairman Bang Si Hyuk for alleged violations of the Capital Markets Act conducted a raid on HYBE on July 24th.
Chairman Bang is suspected of giving false information to HYBE investors in 2019 by claiming there were no plans for an initial public offering (IPO). Based on this, some investors sold their shares to a private equity fund linked to him.
Later, Chairman Bang proceeded with the IPO. Financial authorities believe he gained illegal profits totaling 190 billion won ($136.4 million), including receiving 30% of the sale proceeds from the private equity fund.
Source (1)
