On Tuesday, July 29, the South Korean media outlet Yonhap News reported that HYBE Labels is currently under investigation for irregular tax practices. The report explained that the authorities have launched an investigation into over 27 companies, according to the National Tax Service's suggestion. HYBE is reported to be one of the 27 companies. Furthermore, according to the report, the 4th Investigation Bureau of the Seoul Regional Tax Office has already sent investigators to the HYBE headquarters in Seoul as of June 29 morning. The report also clarifies that three kinds of companies or parties have been included in the tax investigation launch. They are as follows:Stock price manipulators who falsely disclosed the stock prices and sold stocks in bulk to make a profit - nine companiesCorporations that acquire companies through private loans and use or sell the companies' valuable assets and collateral for other investment guise - eight companiesControlling shareholders of listed companies who abused their power by infringing the rights of minority shareholders - 10 companiesTherefore, to thoroughly detect the same, the National Tax Service plans to conduct various kinds of investigations such as digital forensics, financial account tracking, document restoration, false document analysis, and more.Additionally, they are also expected to use the help of FIU's data, also known as the Financial Intelligence Unit. However, no conclusions regarding these investigations have yet been communicated to the masses.What's happening at HYBE Labels? All you need to know as Bang Si-hyuk goes under investigation for unfair trade practicesRecently, according to The Korea Economic Daily, the chairman of HYBE Labels, Bang Si-hyuk, was taken under investigation following suspicions of unfair trade practices. The investigations snowballed from before the rebranding of BigHit Entertainment into HYBE Labels back in 2020, when the company was securing investors. During the same period, before the IPO, the chairman had allegedly misled the company's investors by expressing that the company would not be moving forward with a public listing. However, without informing the investors, Bang Si-hyuk had established ties with private equity funds that resulted in a profit amounting to 400 billion KRW after the company moved ahead with the IPO. Since these profits were not listed on the official filings of HYBE Labels, the chairman may have violated the Capital Market Law of South Korea, which thereby led to the investigations. Following the announcement, HYBE Labels also made an announcement regarding the ongoing issue. Here's what the company said, "It is regrettable that the largest shareholder's active explanation that he appeared for the Financial Supervisory Service investigation and that he had not sought private profits on the premise of the listing was not accepted."The statement continued,"We respect the decision of the financial authorities and will do our best to more actively clarify the related suspicions in the upcoming investigation so that we can restore the trust of the market and stakeholders."Regardless, no proceedings on the case regarding the Chairman, Bang Si-hyuk, have been revealed yet.