Did HYBE’s Bang Si Hyuk downplay CFO's resignation after police raid? All about ADOR director’s exit in 400 billion KRW stock probe

HYBE Corporation, the global entertainment giant behind BTS, SEVENTEEN, and LE SSERAFIM, has come under fire. Prosecutors launched a full-scale legal investigation into alleged financial misconduct involving high-ranking executives. The scandal is reportedly centered around illicit profit-making strategies totaling approximately 400 billion KRW (around 294 million USD).

Former CFO Lee Kyung Joon steps down

One of the most significant developments in the case was the resignation of Lee Kyung Joon, HYBE’s former Chief Financial Officer. Until recently, Lee also served as an internal director at ADOR, the HYBE subsidiary responsible for managing NewJeans. His sudden exit from the company, coming just as the legal probe gained momentum, has raised red flags among industry observers and the public alike.

In what many interpret as a damage-control move, HYBE later allegedly downplayed Lee’s involvement by referring to him as a “general employee.” However, official records from a recent shareholders’ meeting clearly indicate that Lee was appointed as an internal director at ADOR. This contradicts HYBE’s public narrative and further fuels skepticism.

Search and seizure targets HYBE headquarters

South Korean authorities recently conducted an extensive search and seizure operation at HYBE’s main office, signaling a serious escalation in the probe. The investigation centers on allegations that Bang Si Hyuk misled HYBE investors before the company’s IPO.

He reportedly falsely claimed that there were no immediate plans to go public in 2019. This caused some shareholders to sell their shares, unaware HYBE was secretly preparing for an IPO. The shares were then bought by a private equity fund linked to Bang, with undisclosed financial connections.

Prosecutors are believed to be gathering evidence related to HYBE’s leadership structure and its investment strategies. They are also examining financial decisions that may have violated corporate law. The probe has intensified amid growing concerns that company insiders may have generated a massive profit of 400 billion KRW at the expense of fair market practice and shareholder trust.

Who’s Involved?

HYBE’s leadership includes some of the most powerful figures in the entertainment business:

• Bang Si Hyuk – Founder and Chairman of HYBE
• Yoon Seok Joon – Global & Business CEO
• Park Ji Won – HQ & Management CEO
• Lee Jin Hyung – Chief Operating Officer 
• Kim Tae Ho – CSO
• Kim Joong Dong – CIO
• Lee Kyung Joon – Former CFO

All these executives are now under close observation as questions arise about the company’s internal ethical governance practices. As the case unfolds, it remains to be seen whether additional resignations or disciplinary actions will follow.

Public demand transparency

Following the announcement of the investigation, fans and online communities have been vocal in demanding accountability from HYBE’s leadership. Many fans, while supportive of the artists under HYBE’s management, are urging the corporation to adopt stricter oversight and disclose more details about its financial dealings.

Netizens have emphasized that any wrongdoing at the executive level should be thoroughly investigated. They want them to be held accountable, regardless of their rank or reputation.

ALSO READ: Police chase BTS agency chair Bang Si Hyuk in 400 Billion KRW stock fraud probe, search warrant issued against HYBE