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South Korean police have requested a detention warrant for Bang Si-hyuk, the chairman of K-pop giant Hybe, over alleged illegal trading linked to the company's initial public offering.
The Seoul Metropolitan Police Agency said that the founder of the BTS' agency is suspected of breaking financial laws by misleading early investors before Hybe went public and encouraging them to sell their shares to a private fund connected to his associates.
Police claimed that after the label went public, Bang received about 30 per cent of the profits under a prior shareholder agreement, earning roughly 190 billion won ($129.1 million) illegally.
Bang established Hybe, then known as Big Hit Entertainment, in 2005, which is home to globally famous K-pop acts, including BTS, Seventeen, Le Sserafim and KATSEYE.
Hybe reacts to Bang Si-hyuk's detention warrant
A statement from Hybe citing Bang's legal counsel said on Tuesday, April 21, "We regret that a detention warrant has been sought despite our full and consistent cooperation with the investigation over an extended period."
"We will continue to cooperate with all legal procedures and make every effort to clearly explain our position," it said.
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Hybe's shares went down 2.4 per cent by the end of trading after the report, while South Korea's main stock index, the KOSPI, went up 2.7 per cent.
The Korea Times also reported that investigators received their first information about the alleged fraud in late 2024 and moved to search both the Korea Exchange and Hybe's headquarters the following year. Bang has been questioned five times and held under a travel ban.
Moreover, the National Police Agency confirmed that the US embassy in Seoul recently sent a letter asking authorities to allow Bang to travel to the US, despite a travel ban imposed during the investigation, in link to the ongoing BTS global tour.
As per the local media, the warrant request will be reviewed by the Seoul Southern District Prosecutors' Office, and if prosecutors seek a detention warrant, a court would decide whether to order Bang's arrest in two to three days.
