South Korean prosecutors have declined a police request for an arrest warrant for Bang Si-Hyuk, the chairman of the agency representing K-pop supergroup BTS. The police sought the warrant due to suspicions of investor fraud. However, the Seoul Southern District Prosecutors’ Office found the grounds insufficient for detention and advised the police to bolster their case.
Bang, the billionaire founder of Hybe, has been under investigation for allegedly deceiving investors in 2019 by suggesting that Hybe had no immediate plans to go public. This led investors to sell their shares to a private equity fund just before the company went public. Police claim that a side deal worth around 200 billion won ($185.1 million Cdn) may have been made with Bang, promising him a share of post-IPO stock sale profits.
Despite the allegations, Bang denies any wrongdoing, as stated by Hybe officials. His legal team has criticized the police for attempting to arrest him, emphasizing his full cooperation with the investigation.
The legal issues facing Bang have become a challenge for Hybe’s public image, coinciding with BTS’s global tour launch after a lengthy hiatus for the members’ military service. BTS recently performed for international fans at a free concert in Seoul and held shows in Goyang city and Tokyo. The group is set to commence a series of events in the U.S., starting with a concert in Tampa, Florida, this weekend.