S. Korea Seeks Arrest Warrant for HYBE Chairman over Fraud

South Korean police have requested an arrest warrant for Bang Si-hyuk, the chairman of HYBE, the entertainment company behind global K-pop group BTS, over alleged investor fraud.

Authorities say Bang is suspected of breaching capital market laws by misleading early investors in 2019 about HYBE’s plans to go public. 

Investigators claim he told investors the company had no intention of pursuing an initial public offering, prompting some to sell shares to a private equity fund linked to his associates.

Police further allege that Bang later received around 30% of the fund’s post-IPO profits under a prior arrangement, amounting to approximately 190 billion won (about $129 million or €109.5 million).

Bang has been under investigation since November and has denied any wrongdoing. HYBE has so far declined to comment on the request for an arrest warrant.

Founded in 2005 as Big Hit Entertainment, HYBE has grown into one of South Korea’s most influential music agencies, managing BTS as well as other major K-pop acts including Seventeen, Le Sserafim, and Katseye.

The legal case comes at a pivotal moment for BTS, which has recently resumed global touring following a near four-year hiatus while members completed mandatory military service.

Earlier this month, the group launched a worldwide tour covering 34 cities, setting a new record for the most tour stops by a K-pop act. According to HYBE, tickets for shows in South Korea, North America, and Europe sold out within hours of release.

The investigation adds pressure on HYBE as it continues to expand its global footprint in the highly competitive K-pop industry.