South Korean police are seeking to arrest music mogul Bang Si-Hyuk, the chairman and founder of HYBE, the agency behind K-pop supergroup BTS. The Seoul Metropolitan Police Agency has asked prosecutors to request a court warrant for Bang's arrest as part of an expanded investigation into allegations that he illegally gained more than $100 million in an investor fraud scheme involving unfair stock trading.
Police allege that Bang misled investors in 2019 by stating that HYBE had no plans to go public, inducing them to sell their shares to a private equity fund before the company proceeded with an initial public offering. Authorities believe a side deal may have paid Bang approximately 200 billion won, or $136 million, promising him 30 percent of post-IPO stock sale profits.
Bang, who founded HYBE as Big Hit Entertainment in 2005, is considered one of the most powerful figures in K-pop. In addition to BTS, he oversees other popular acts including Seventeen, Le Sserafim, and Katseye. Representatives for HYBE did not immediately respond to requests for comment regarding the investigation.
These legal challenges emerge as BTS embarks on a global tour following a nearly four-year hiatus for mandatory military service. The group recently performed a free comeback concert in Seoul, along with shows in Tokyo and Goyang, and is scheduled to begin a series of U.S. events with a concert in Tampa, Florida, later this month.