Prosecution Rejects Arrest Warrant for Hybe Chairman Bang

Prosecutors in South Korea have rejected a police request for an arrest warrant against Bang Si-Hyuk, the founder and chairman of K-pop powerhouse Hybe, citing insufficient evidence. The Seoul Southern District Prosecutors' Office returned the arrest warrant request filed earlier this week to the police, who had accused Bang of fraudulent unfair trading under the Capital Markets Act.

Police allege that Bang deceived investors in 2019 into selling their shares in Hybe before its initial public offering (IPO), through which he allegedly pocketed about $175.28 million in illegal profits. The act prohibits obtaining financial gains through false statements or by using deceptive schemes in connection with financial investment products, such as unlisted shares.

Bang has denied the allegations, stating that the IPO followed all laws and regulations. Police first received a tip-off on the allegations in late 2024 and raided the Korea Exchange and Hybe's headquarters as part of their investigation. Bang was banned from leaving South Korea in August 2023.

The U.S. Embassy in Seoul recently sent a letter to the police agency asking that it allow him to travel to the United States to participate in K-pop supergroup BTS's world tour, which is currently underway after a nearly four-year hiatus due to mandatory military service. The group has performed in Seoul and Tokyo and is scheduled for several concerts in the U.S., starting with an event in Tampa, Florida later this month.

The allegations have caused significant public relations challenges for Hybe, especially as BTS embarks on its global tour. Industry watchers estimate that Hybe stands to make more than $1 billion from the sold-out tour, which will take BTS to 34 cities worldwide. The investigation has drawn international attention and raised questions about corporate governance in South Korea's vibrant K-pop industry.