Police Seek Arrest of Hybe's Bang Over Alleged Fraud

South Korean police are seeking to arrest Bang Si-Hyuk, the founder and chairman of Hybe—the agency behind K-pop supergroup BTS—over allegations of investor fraud tied to the company's 2019 initial public offering (IPO), according to multiple reports. The Seoul Metropolitan Police Agency has requested a court warrant for Bang's arrest, accusing him of misleading early investors and steering them to sell shares to a private equity fund linked to his associates.

Police allege that after Hybe went public, the fund sold its stake and Bang received approximately 30% of the profits under a prior shareholder agreement, earning roughly $129.1 million in illicit gains. According to Reuters, this violates capital market laws. Bang's legal team has denied any wrongdoing but expressed regret that police sought his arrest despite their full cooperation with the investigation.

The allegations have caused a major public relations setback for Hybe, especially as BTS embarks on its global tour after a nearly four-year hiatus due to mandatory military service. The group recently performed in Seoul and Tokyo and is scheduled to hold several concerts in the U.S., starting with an event in Tampa, Florida later this month.

The investigation has also drawn international attention, as the U.S. embassy in Seoul sent a letter requesting that authorities allow Bang to travel to the United States despite his travel ban. The request cited plans for Bang and other senior executives to attend an event marking U.S. Independence Day and hold talks related to BTS's global tour.

Bang has been barred from leaving South Korea since August 2023, according to UPI. If prosecutors decide to seek a detention warrant, a court will typically hold an arrest hearing within two to three days. Hybe shares fell by 2.4% following the news, reversing earlier gains in South Korea's benchmark KOSPI index.

BBC reports that police allege Bang misled investors in 2019 by claiming a public listing for his conglomerate was not likely while secretly preparing for it. The case has seen raids at Hybe's headquarters, some of Bang's assets frozen, and calls for him to step down as company chairman. 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.

Under South Korean law, those convicted of making 5bn won or more in illicit proceeds face between five years in jail and a life sentence. The financial regulator launched an investigation in December 2024 into allegations that Bang entered into profit-sharing agreements with private equity funds ahead of Hybe's market debut without proper public disclosure.