Turbulence at HYBE and Karina’s Apology: Insider Trading Probe and Social Media Backlash
### 1. HYBE Insider Trading Investigation
### 1.1 Background and Scope
- South Korea’s Financial Supervisory Service (FSS) and prosecutors executed a raid on HYBE’s headquarters in May 2025, probing alleged insider trading and fraudulent securities transactions.
- Central to the investigation is a 400 billion KRW deal involving HYBE and a private equity fund, which may constitute a violation of the Capital Markets Act.
- The case traces back to 2019, when Bang Si-hyuk allegedly misled investors about HYBE’s IPO plans and profit-sharing agreements.
### 1.2 Financial Impact
| Metric | Amount (KRW) | USD Equivalent |
| ------------------------------------------------ | ---------------- | ----------------- |
| HYBE’s reported profit from the disputed deal | 240 million | ≈ 175,000 |
| Value of the alleged fraudulent securities deal | 400 billion | ≈ 290 million |
*Sources: AllKpop “Prosecutors Raid HYBE Headquarters Amid Insider Trading Investigation”<br>AllKpop “K-Netizens React to Reports of Bang Si-hyuk Being Investigated Over Alleged Fraudulent Securities Transactions”*
### 1.3 Stakeholder Reactions
- Netizens have voiced strong opinions on social media, for example:
- “I really hope Bang Si-hyuk gets arrested.”
- “There won’t be enough prisons at this rate.”
- “Didn’t they completely overhaul the staff in 2019? Maybe it wasn’t just about filling the company with his own people.”
- “Wow, how could this happen to a company designated by the Ministry of Employment and Labor as a ‘top job creator’?”
### 1.4 Absence of Direct Quotes from Bang Si-hyuk
Despite thorough searches across multiple news outlets—including AllKpop, Korea Herald, Variety, Digital Music News, Moneycontrol, Music Business Worldwide, and The Indian Express—no direct statements or interviews from Bang Si-hyuk have been published. Most reports focus on the legal and financial aspects of the probe rather than firsthand commentary from HYBE’s founder.
*Source: AllKpop “K-Netizens React to Reports of Bang Si-hyuk Being Investigated Over Alleged Fraudulent Securities Transactions”*
### 1.5 Potential Implications
- **HYBE Operations**: The investigation could delay strategic initiatives, including the much-anticipated BTS full-group comeback.
- **Investor Confidence**: Market reaction has been negative, with HYBE’s share price declining as details of the probe emerged.
- **Legal Ramifications**: If convicted, involved executives may face severe penalties under South Korea’s Capital Markets Act.
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## 2. aespa’s Karina Apology Over Instagram Post
On May 28, 2025, SM Entertainment issued an official statement regarding an Instagram photo posted by aespa’s Karina. The image featured her wearing a red-and-black jacket emblazoned with the number “2,” which sparked speculation about her political views in the run-up to South Korea’s election season.
### 2.1 Official Statement Excerpt
“This is SM Entertainment. We apologize for causing concern due to our artist Karina’s recent post. Karina simply shared something from her daily life on social media, with absolutely no other intention or purpose. Once she realized that the post could be misunderstood, she immediately deleted it. We sincerely apologize for any distress this may have caused unintentionally. Our agency will also be more careful and make greater efforts to prevent such incidents from happening in the future.”
### 2.2 Context and Aftermath
- **Removal of Post**: The photo was taken down swiftly after Karina and her agency recognized the potential for misunderstanding.
- **Public Reaction**: Fans and observers largely accepted the apology, praising the prompt response and clarity from SM Entertainment.
- **Agency Precautions**: SM Entertainment has committed to stricter social media guidelines for its artists to mitigate future controversies.
*Source: Soompi “aespa’s Agency Releases Statement Regarding Karina’s Recent Instagram Post”*
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**References**
1. Korea Herald: https://www.koreaherald.com/article/10498503
2. AllKpop (Insider Trading Investigation): https://www.allkpop.com/article/2025/05/prosecutors-raid-hybe-headquarters-amid-insider-trading-investigation
3. AllKpop (Netizen Reactions): https://www.allkpop.com/article/2025/05/k-netizens-react-to-reports-of-bang-si-hyuk-being-investigated-over-alleged-fraudulent-securities-transactions
4. Soompi: https://www.soompi.com/article/1748049wpp/aespas-agency-releases-statement-regarding-karinas-recent-instagram-post