Bang Si-hyuk, founder and chairman of HYBE, is facing the possibility of arrest following allegations of fraudulent activity linked to the company’s stock market debut.
According to reports cited by BBC News, South Korean police have asked prosecutors to pursue an arrest warrant. Investigators claim Bang misled investors in 2019 regarding the company’s plans to go public, while allegedly preparing for the listing behind the scenes.
Authorities allege that the executive provided inaccurate information about HYBE’s initial public offering (IPO), allowing him to benefit financially. Police estimate that he may have gained about 200 billion won (approximately $136 million) through the process.
Bang has denied any wrongdoing. His legal representatives said they regret the move to seek an arrest warrant and insisted he will continue to cooperate with investigators while presenting his defence.
The case has been under investigation for several months and has included multiple developments, such as reported raids on HYBE’s offices, asset freezes, and increasing pressure from some quarters for Bang to step down from his role. He has also reportedly been under a travel restriction since August.
HYBE, which debuted on South Korea’s Kospi exchange in October 2020, achieved global prominence largely through the success of BTS. The group has been central to the company’s rapid growth and international reach.
The investigation comes at a pivotal moment, as BTS recently resumed group activities with a global tour after nearly four years. Industry estimates suggest the tour could generate over $1 billion in revenue for the company.
Under South Korean law, individuals found guilty of generating illicit profits exceeding 5 billion won could face penalties ranging from a minimum of five years in prison to life imprisonment.
Bang, a key architect of BTS’s rise in the global music industry, remains one of the most influential figures in K-pop, having built HYBE into a major entertainment powerhouse.
