On August 19, 2025, News Free Zone reported that South Korea’s National Tax Service (NTS) had widened its special audit of HYBE. The tax investigation was initiated at HYBE’s Yongsan headquarters on July 29. It has now extended into private equity funds that booked significant gains around the company’s 2020 market debut. Authorities are collecting records from multiple funds, with Eastone Equity Partners named as a focal point.At the heart of the inquiry is whether Chairman Bang Si-hyuk misled early investors in 2019 by suggesting that a listing was not planned. Meanwhile, shares were being transferred into special-purpose entities connected to private equity. After HYBE was listed in October 2020, those entities sold and realized substantial profits. Authorities are examining claims that Bang Si-hyuk benefited from a side arrangement worth hundreds of billions of won, with the often-cited total around ₩400 billion. Eastone PE’s transactions are central to the timeline. In June 2019, its “Eastone No.1 PEF” reportedly purchased part of Vice President Choi Yoo-jung’s stake for about 25 billion KRW. In November 2019, an affiliate called Mainstone acquired approximately 105 billion KRW worth of additional shares from early holders. This included AlpenRoute Asset Management and LB Investment.On IPO, Eastone exited and later shut down. Police and financial regulators are examining allegations that approximately 30% of the gains, around 200 billion KRW, flowed back to Bang Si-hyuk through a concealed agreement. The same day, The Bell reported another shock in the capital markets. Netmarble canceled its planned issuance of 250 billion KRW in exchangeable bonds tied to HYBE shares. The deal had been arranged with NH Investment & Securities and was fully taken over by NH Hedge Asset Management, which had even started forming a project fund last month. Netmarble withdrew after just over a month, citing the headlines about “owner risk” and sharp volatility in HYBE’s stock. The bond was intended to help refinance debt from Netmarble’s 2021 SpinX acquisition. The company still needs liquidity and may pursue funding again once prices stabilize or through other channels.All we know about Bang Si-hyuk and HYBE’s case right nowThe NTS expansion adds to a multi-agency investigation already underway. On July 24, police searched the company's headquarters. The Securities and Futures Commission referred Bang Si-hyuk to prosecutors over alleged unfair trading related to the pre-IPO period. The Financial Supervisory Service’s special judicial police, overseen by the Seoul Southern District Prosecutors’ Office, are conducting a parallel investigation.Authorities are examining the 2019 purchases (25 billion KRW in June via Eastone No.1 PEF and 105 billion KRW in November via Mainstone) and the full exit around the October 2020 IPO. Reports claim Eastone PE paid out roughly 30% of its gains under a private promise. Eastone shut down the following year. The NTS is now gathering documents from several funds, not just Eastone. It aims to determine whether similar structures were used across various vehicles and if tax liabilities or undisclosed agreements are involved.webelieveingwarosa @webelieveinbotsLINKAFTER SECURING THE DATA, HYBE’S TAX INVESTIGATION IS EXPANDED TO INCLUDE THE PRIVATE EQUITY FUNDS The national tax service is expanding their investigation to include private equity funds after they just found material linking several PEF’s to the fraud, specifically, EStone PE.Netmarble’s reversal on the 250 billion KRW exchangeable bonds highlights how legal uncertainty influences funding choices. The gaming giant had already raised cash in previous years by selling parts of its HYBE stake. Withdrawing from the bond now indicates increased caution until HYBE’s share price and governance issues settle. When asked about the Eastone-related aspect, Hybe's representative previously stated there was no comment to provide. Bang Si-hyuk has continued his public schedule even as investigations progress. On August 15, he was among the business leaders invited to President Lee Jae-myung’s national appointment ceremony at the Blue House, attending alongside leaders from Samsung, SK, Hyundai, and others. Earlier this month, he returned from Los Angeles, where he was reportedly involved in planning BTS’s 2026 comeback. The group’s preparations are ongoing, though his direct, hands-on role remains limited by legal issues.Bang Si-hyuk with BTS (Image via Getty)The NTS can issue assessments or refer tax findings further. Prosecutors will evaluate market-abuse and fraud-related charges if the evidence meets the required thresholds. The Eastone PE document haul is pivotal, as are communications from 2019 concerning investor expectations, listing timing, and profit-sharing structures.