South Korean police have moved to arrest Hybe chairman Bang Si-hyuk as they widen an investigation into alleged investor fraud tied to the company behind BTS. The case centers on claims that Bang misled investors before Hybe’s stock market debut and then profited from a private deal worth more than 200 billion won, or about USD 136 million. The development lands at a tense moment for Hybe, with BTS back on the road after finishing military service and the company already facing scrutiny over internal disputes.
Bang Si-hyuk’s arrest case and fraud allegations
The Associated Press reported on Tuesday that the Seoul Metropolitan Police Agency has asked prosecutors to seek a court warrant to arrest Bang. Police are investigating allegations that in 2019, he told investors Hybe had no plans to go public, leading some to sell their shares to a private equity fund. Investigators believe the fund later paid Bang around 200 billion won under a side agreement that promised him 30 percent of profits from stock sales after the IPO. Bang has been under a travel ban since August.Bang’s legal team did not directly answer the accusations in a statement to The Associated Press. Instead, it said it regretted that police were seeking his arrest “despite our full and consistent cooperation with the investigation over an extended period.” The statement added, “We will continue to cooperate with all legal procedures and make every effort to clearly explain our position.” Hybe officials have also said Bang denies wrongdoing.
Hybe BTS comeback and company turmoil
The investigation creates a major image problem for Hybe as BTS resumes global activities after a nearly four-year break linked to South Korea’s mandatory military service rules. The group held a free comeback concert in Seoul last month in front of tens of thousands of fans, then continued with shows in Goyang and Tokyo. BTS is also set to begin a run of U.S. events with a concert in Tampa, Florida, later this month.Bang founded Hybe (then called Big Hit Entertainment) in 2005 and helped turn BTS into a global force. In 2021, the company spent about USD 1 billion to buy Scooter Braun’s Ithaca Holdings. Hybe also manages acts including Seventeen, Le Sserafim, and Katseye. At the same time, it has dealt with a public fight between Bang and producer Min Hee-jin over NewJeans, a dispute that moved into court and continues to shadow the company.Disclaimer: The information in this report is based on a legal hearing as reported by a third-party source. The details provided represent allegations made by the parties involved and are not proven facts. The case is ongoing, and a final verdict has not been reached. The publication does not claim that the allegations are true.
