South Korean Tax Agency Opens Investigation Into HYBE

South Korea’s National Tax Service (NTS) has begun a high-profile investigation into HYBE and its Founder & Chairman Bang Si-hyuk.

The probe was disclosed on June 29, 2025 and is part of a broader crackdown that includes alleged tax invasion and claims of market manipulation involving several domestic firms. According to Korean media reports, NTS officials conducted an unannounced audit at HYBE’s Yongsan headquarters in Seoul.

HYBE is reportedly among 27 companies subject to this new round of investigations. Accusations include artificially increasing stock prices through false corporate disclosures, leveraging private loans for company takeovers linked to asset deals, and exploiting minority shareholder rights for personal benefit. Authorities estimate that the total suspected tax evasion across all parties may reach nearly 1 trillion won ($718.2M).

HYBE and Chairman Bang Si-hyuk, its principal shareholders, are also at the center of ongoing criminal inquiries spearheaded by financial and legal authorities. Prosecutors allege that in 2019 Bang Si-hyuk told early investors the company’s IPO would be delayed, but instead facilitated the sale of stock to a special purpose entity linked to private equity. This move allegedly allowed certain parties to profit massively when HYBE went public in October 2020.

Reports suggest Bang personally received as much as 30% of the proceeds, with the contested profits ranging from 190 to 400 billion won ($140-$293M). Investigators are now trying to determine if these earnings involved illicit gains or tax evasion.

This latest probe is not HYBE’s first entanglement with regulators. In 2022, a standard audit led to repayments worth billions of won in back taxes. HYBE also faced insider trading scandals where three former executives were criminally prosecuted for using confidential information about investments in rival company YG Plus for personal gain.

HYBE’s official stance is one of cooperation and compliance. “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,” said a spokesperson.

HYBE also addressed Bang’s role, stating, “It is regrettable that the largest shareholder’s active explanation that he appeared for the Financial Supervisory Service investigation and that he had not sought private profits on the premise of the listing was not accepted.” At present, authorities have withheld further details, and the investigation remains ongoing.