HYBE is under investigation after police raided the company’s Seoul headquarters twice in July.
The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Division led raids on July 24 and an unannounced one on July 29. The focus? Suspected unfair trading practices and possible stock manipulation.
Authorities hinted the probe could widen beyond domestic issues to include tax evasion and irregularities involving overseas branches.
National Tax Service officials said the irregular tax audit “will likely not focus solely on unfair trading activities in the stock market by major shareholders and senior executives.”
They added the investigation could cover:
“whether profits generated by overseas branches in countries like the United States, Japan, and Southeast Asia were properly reported (such as offshore tax evasion or transfer pricing manipulation), whether taxes related to affiliated artists were handled appropriately, and the nature of internal transactions between related parties and subsidiaries.”
Public reaction on online communities heated up fast:
- “Dig up everything.”
- “Go bankrupt, corrupt company.”
- “Please.. I’m wishing for their downfall.”
- “Funny how their fans are still dragging Min Hee Jin and NewJeans while this is happening. From a third party view, it just looks like their final meltdown. Honestly hilarious.”
- “I hope they get hit with a massive back tax bill. The country needs the money anyway.”
With multiple agencies involved and scrutiny on overseas revenue and artist-related taxes, HYBE’s legal troubles look far from over.
