HYBE Shares Plummet After Sudden Investigation On Bang Si Hyuk’s Alleged Illegal Activities 

“The steepest decline among major music-related stocks…”

HYBE is facing mounting pressure as news of an ongoing investigation into its chairman, Bang Si Hyuk, has seemingly triggered a sharp drop in stock value.

HYBE chairman Bang Si Hyuk | TIME

Over the week ending May 30, HYBE’s shares fell by 6.8 percent, closing at ₩266,000 KRW (about $192 USD). According to Billboard, the sudden drop marked the steepest decline among major music-related stocks during a period of relatively mild market movement.

| EY

The sharp dip follows reports from South Korea indicating that police have reissued a search and seizure warrant against Bang. The chairman is under investigation for alleged fraudulent trading linked to HYBE’s initial public offering (IPO) in 2020.

Top HYBE Executive Resigns Supposedly After Authorities Initiate Probe Into Illegal Financial Activities

Authorities believe that Bang misled early investors about the company’s plans to go public, which may have influenced them to sell their shares prematurely. Meanwhile, deals made with private equity firms reportedly allowed Bang to secure hundreds of billions of won in profits once HYBE went public.

HYBE Faces Multiple Search And Seizure Warrants Over Alleged Financial Frauds

While HYBE has stated that all business transactions were conducted legally, the ongoing scrutiny has clearly unsettled investors. Comparatively, JYP Entertainment‘s stock dropped only 0.9% and SM Entertainment saw a 3.1% decline during the same period.

| Billboard

With regulatory bodies and law enforcement now actively involved, the fallout may continue to affect the company’s market performance. As the investigation deepens, the K-pop powerhouse may face growing investor uncertainty and public skepticism.