HYBE—yes, the empire built on BTS’s global success—is facing one firestorm after another. Buckle up.
First up: South Korean police raided HYBE’s headquarters on July 24, 2025, investigating alleged unfair share trading tied to founder and chairman Bang Si‑hyuk around the company’s 2020 IPO. Authorities suspect Bang and three other executives misled shareholders and profited from secret pre-IPO share transfers to entities under their control. HYBE insists it’s fully cooperating and followed all legal guidelines—yeah, tell that to the financial regulators.
Meanwhile, former BigHit Communications Director Elly Chae Eun went public in June 2025, blasting the company for fostering a toxic work culture. She described extreme stress leading to weight and hair loss due to 24/7 demands from superiors—late-night KakaoTalk messages, midnight calls, total burnout. She pointed out that HYBE later distributed billions of won to insiders who hadn’t contributed to the company’s early sweat equity. Chae Eun explicitly praised BTS, clarifying they were never involved—highlighting how each member was awarded roughly $6.7 million in shares during the IPO, while Bang pulled in nearly $300 million. She vowed to pursue justice through legal channels.
And that’s not all. Three employees from HYBE labels—including BigHit and Source Music—just received suspended prison sentences for insider trading tied to BTS’s military enlistment announcement in June 2022. Those employees sold shares before the hiatus became public, avoiding major losses. Sentences ranged from six to ten months (suspended for two years), fined up to 231 million KRW (~$175K), each. The court stressed how any leak about BTS’s activities drastically affects HYBE’s stock—as seen in the 25% plunge on its worst trading day ever.
Throw in the Min Hee‑jin/ADOR dispute: HYBE launched an internal audit and demanded Min resign as CEO of ADOR, citing attempts to push ADOR toward autonomy. She fired back, alleging HYBE purposely ignored creative similarities between her girl group NewJeans and another HYBE group, Illit, and accused them of marginalizing NewJeans. Share prices dropped nearly 8% when word got out. HYBE later released KakaoTalk messages suggesting attempts at control over ADOR, while Min filed injunctions and lawsuits of her own. The split with NewJeans culminated in a $420 million market cap drop when they rebranded to NJZ, citing discrimination and mistreatment—facing legal battles and injunctions to block them from performing independently.
HYBE’s internal leaks also revealed a bizarre 18,000‑page “Weekly Music Industry Report” packed with unverified rumors, harsh commentary on idols, and rumors about rival artists. Lawmakers shredded it during a National Assembly audit in late 2024. HYBE’s CEO issued a public apology shortly after, calling it inappropriate and pledging to reach out to affected artists and labels for damage control.
But here’s the thing: BTS isn’t tangled in this mess. The boys stayed true, never involved in internal suits, and remain focused on making music and reconnecting with fans. They just completed military service and prepare for their first full-group comeback post service.
This is HYBE at the crossroads: a global music titan built on BTS’s artistry, now at risk of crumbling under accusations of insider profiteering, workplace abuses, label infighting, and lack of transparency. For the K-pop business at large, it’s a wake-up call on accountability, ethics, and how much power one group—or chairman—can wield.
But BTS? Still pure gold. Their legacy isn’t tied to shareholder drama or corporate politics. It’s in their music, their performances, and the ARMY that’s stayed loyal through every scandal.
The question now: as HYBE attempts damage control, can it restore trust without dragging BTS into the fallout? Because the label might be sinking in controversy, but ARMY’s faith isn’t—and neither is the boys’ bond.
