HYBE Corporation, the powerhouse behind global K-pop sensations BTS, SEVENTEEN, and LE SSERAFIM, is embroiled in a widening legal scandal that’s shaking the entertainment industry. Prosecutors in South Korea have launched a comprehensive investigation into allegations of large-scale financial misconduct involving some of HYBE’s top-ranking executives. At the heart of the controversy: questionable profit-making schemes reportedly amounting to 400 billion KRW (approximately 294 million USD).
Key Exit: Former CFO Lee Kyung Joon Quits Amid Turmoil
One of the earliest shockwaves in the unfolding case was the sudden resignation of Lee Kyung Joon, HYBE’s former Chief Financial Officer. Lee also held the role of internal director at ADOR, a HYBE subsidiary overseeing the rising girl group NewJeans.
His abrupt departure, coinciding with the ramping up of the legal probe, has raised eyebrows and suspicions. Observers speculate that Lee’s resignation may be linked directly to the allegations. Despite this, HYBE attempted to minimize his role, referring to him merely as a “general employee.” However, corporate filings from a shareholders’ meeting contradict that narrative, confirming his director-level position at ADOR. This inconsistency has intensified public skepticism about the company’s transparency.
HYBE Headquarters Raided in Major Search Operation
As part of the expanding investigation, South Korean prosecutors conducted a search and seizure operation at HYBE’s main office. This bold move signals the seriousness of the authorities’ intent to uncover the truth.
Central to the case is HYBE’s controversial IPO process. Investigators allege that Chairman Bang Si Hyuk misled shareholders in 2019 by stating there were no imminent plans to go public—despite internal preparations being underway. Some shareholders, misinformed by these claims, reportedly sold their shares, which were then acquired by a private equity firm with ties to Bang. These secretive transactions are now under scrutiny for potentially breaching corporate and securities laws.
Leadership in the Hot Seat
Authorities are closely examining HYBE’s leadership structure and financial decision-making processes. Among those now under the microscope:
- Bang Si Hyuk – Founder and Chairman
- Yoon Seok Joon – Global & Business CEO
- Park Ji Won – HQ & Management CEO
- Lee Jin Hyung – Chief Operating Officer
- Kim Tae Ho – Chief Strategy Officer
- Kim Joong Dong – Chief Investment Officer
- Lee Kyung Joon – Former CFO
All are reportedly being evaluated for their involvement—or knowledge—of the alleged misconduct.
Mounting Public Pressure for Accountability
As news of the scandal broke, fan communities and online forums lit up with demands for full transparency. Many fans have expressed support for the artists but insist that HYBE’s corporate leadership must be held accountable if wrongdoing is confirmed.
Calls for stricter corporate governance and open disclosure of financial dealings are growing louder. Netizens emphasize that seniority or fame should not shield any executive from facing the consequences of unethical behavior.
What Comes Next?
With investigations ongoing and the company under intense public and legal scrutiny, the situation at HYBE remains fluid. Industry insiders anticipate further resignations, restructuring, or even legal action depending on the probe’s findings.
As this high-stakes corporate drama unfolds, one thing is clear: the reputation of one of the world’s most influential entertainment companies hangs in the balance.
