The founder of BTS’s management company, Hybe, K-pop mogul Bang Si-hyuk, could be arrested over allegations of fraudulent trading linked to the company’s stock market debut.
According to BBC News on Tuesday, South Korean police have requested prosecutors seek an arrest warrant over claims that Bang misled investors in 2019 about Hybe’s initial public offering while allegedly preparing for the listing in secret.
Police allege that Bang, who is also Hybe’s chairman, misrepresented the company’s listing prospects and benefited financially from the process. Investigators claim he “pocketed some 200bn won ($136m; £101m) as a result,” though he has denied any wrongdoing.
Bang has maintained that his actions were lawful, with his legal team saying they “regret” the police move for an arrest warrant and insisting they will “continue to co-operate with all legal procedures and make every effort to clearly explain our position.”
The case, which has been under investigation for months, has included raids on Hybe’s headquarters, asset freezes, and growing calls for Bang to step down as chairman. He has also been under a travel ban since August.
Hybe, which was listed on South Korea’s Kospi exchange in October 2020, rose to global prominence largely through BTS, the group credited with driving the company’s explosive growth and valuation.
The development comes just as BTS began a comeback world tour after nearly four years away from group activities, a move expected to generate over $1bn in revenue for Hybe, according to industry estimates.
Bang, who played a key role in shaping BTS’s global success, recently described the group in a Billboard interview as becoming “like a tourist attraction… widely recognised and embraced by the global public.”
Under South Korean law, individuals convicted of making illicit gains above 5bn won face penalties ranging from five years in prison to life imprisonment.
Bang Si-hyuk, who co-founded JYP Entertainment before establishing Big Hit Entertainment (now Hybe), is regarded as one of the most influential figures in the global rise of K-pop, having transformed BTS from a debut-era boy group into one of the world’s most successful music acts.