It has been reported that the entertainment company HYBE is undergoing a tax investigation by the National Tax Service following a police search and seizure.
According to Field News on the 29th, the 4th Investigation Division of the Seoul Regional Tax Office dispatched agents to HYBE's headquarters in Yongsan, Seoul, to conduct a field investigation and seize materials necessary for the tax investigation.
Earlier that morning, the National Tax Service announced in a briefing that it had launched a sudden tax investigation against 27 individuals suspected of tax evasion related to stock market disruption and unfair practices. It has been reported that HYBE is among the targets of this investigation.
The tax investigation on HYBE comes just three years after the last one in June 2022. At that time, the 1st Investigation Division of the Seoul Regional Tax Office conducted a regular tax investigation on HYBE, resulting in the collection of hundreds of millions of won in taxes.
Meanwhile, the police investigating Chairman Bang Si-hyuk for violations of the Capital Markets Act conducted a search and seizure at HYBE on the 24th.
Chairman Bang is accused of deceiving existing HYBE investors in 2019 by claiming there were no plans for an initial public offering (IPO), leading them to sell shares to a private equity fund associated with him.
Chairman Bang subsequently proceeded with the IPO and is reported by financial authorities to have gained 190 billion won in unjust profits, including receiving 30% of the sale profits from the private equity fund.
[Lee Da-gyeom, Star Today Reporter]
