HYBE Entertainment — the powerhouse behind global K-Pop sensations like BTS, NewJeans, and LE SSERAFIM — is at the center of a serious insider trading investigation, according to reports from The Korea Times.
Early Thursday, the Seoul Southern District Prosecutors’ Office conducted a raid at HYBE’s headquarters in central Seoul. The operation is part of an investigation into allegations that a HYBE executive used confidential company information to make illegal gains on the stock market.
Executive Accused of Profiting from YG Plus Deal
The unnamed HYBE executive allegedly purchased shares in YG Plus, a subsidiary of fellow K-Pop giant YG Entertainment, after obtaining non-public information about a planned business partnership between the two companies.
Reports suggest the executive earned an estimated 240 million South Korean won (roughly $175,000 USD) through the stock deal.
HYBE’s Expanding Influence in K-Pop
HYBE, formerly known as Big Hit Entertainment, has rapidly become one of the most influential players in the global music industry. The label manages BTS, a Grammy-nominated group with nine platinum albums and millions of fans worldwide.
In addition to BTS, HYBE oversees a growing roster of chart-topping K-Pop groups, including:
- Tomorrow X Together (TXT)
- NewJeans
- BOYNEXTDOOR
- LE SSERAFIM
- KATSEYE
These groups have played a major role in HYBE’s stock market performance and global expansion.
Investigation Ongoing
As of now, South Korean authorities have not released an official statement regarding the raid or charges against the executive. HYBE has also not issued a comment on the situation, despite outreach from several media outlets.
The investigation comes at a time when the K-Pop industry is under increased scrutiny, as entertainment companies grow into global conglomerates with far-reaching financial influence.
More details are expected as the investigation continues.