National Tax Service launches special tax investigation into HYBE and Chairman Bang Si-hyuk amid ongoing stock manipulation probe

On July 29, 2025, Field News reported that music giant HYBE and its chairman, Bang Si-hyuk, are under a new investigation by South Korea’s National Tax Service. The organization has launched a surprise tax investigation as part of a broader probe into 27 individuals and companies suspected of tax evasion and market manipulation.

HYBE is a leading K-pop agency behind acts like BTS and SEVENTEEN. The label was listed as a key target. The Seoul Regional Tax Office’s 4th Investigation Bureau reportedly sent officers to HYBE’s Yongsan headquarters without prior notice. They quickly began collecting relevant materials.

This was the company's second major tax audit. The first one took place in 2022 and resulted in billions of won in taxes collected. The investigation is ongoing alongside a criminal probe involving Chairman Bang Si-hyuk and former HYBE executives.

The Securities and Futures Commission had previously filed a complaint accusing them of misleading investors about HYBE’s IPO timeline. Authorities claimed that Bang Si-hyuk persuaded early shareholders to sell their stakes to private funds linked to him, even though preparations for the IPO were already in progress.

After HYBE went public, these funds reportedly sold the shares at a profit, with Bang Si-hyuk allegedly taking 30% of the gains, totaling nearly 200 billion won.

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More scrutiny as multiple agencies investigate Bang Si-hyuk’s dealings

The police had already started an investigation in December 2024. However, their requests for a search warrant were denied twice before finally being approved on the third try. On July 24, investigators raided HYBE's Seoul office and seized documents related to the ongoing securities fraud case.

At the same time, special judicial police under the Financial Supervisory Service are also continuing their probe into the matter under the supervision of prosecutors.

The financial authorities contend that Bang Si-hyuk violated Article 178 of the Capital Market Act by earning unfair profits through non-transparent dealings related to HYBE’s IPO. The central allegation is that he encouraged early investors to sell based on false information. This occurred while he arranged a profit-sharing deal with related private equity firms.

Reports from Rolling Stone and Yonhap News indicated that major institutions, including Korea’s National Pension Service, were among those impacted by the transactions, which could have significant financial consequences. Reports also stated that Bang’s position as HYBE’s largest shareholder might face scrutiny if formal charges are filed.

While HYBE is still developing major projects, including plans for BTS’s highly anticipated group comeback in spring 2026, along with several legal challenges that have arisen, management may be concerned about the increasing number of legal issues and public scrutiny.

With heightened public attention and internal controversies raised by the recent fallout with ADOR, combined with questions surrounding the company's leadership, HYBE may be open to increasing scrutiny.

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Stakeholders are closely monitoring how HYBE handles this crisis, particularly because its global reputation and artist management are central to its business.

Edited by Shreya Das