Prosecutors search K-pop powerhouse HYBE over allegations of fraudulent trading

This undated file photo shows the corporate logo of K-pop powerhouse HYBE. Yonhap

Prosecutors have raided HYBE, the K-pop agency behind global superstar group BTS, over allegations of insider trading by one of its executives, judicial sources said Thursday.

According to the sources, the Seoul Southern District Prosecutors' Office recently searched HYBE's headquarters in central Seoul to investigate allegations that an executive gained illicit profits worth 240 million won ($176,500) through stock trading using insider information.

The executive, whose identity was withheld, is suspected of purchasing shares of YG Plus, an affiliate of another K-pop powerhouse YG Entertainment, after learning of HYBE's plan to invest in the company.

Separately, HYBE founder and Chairman Bang Si-hyuk has also been under police investigation over charges that he intentionally misled investors ahead of the company's initial public offering in 2020.