South Korean prosecutors have declined a request from police for an arrest warrant for Bang Si-Hyuk, the chairman of the agency responsible for the popular K-pop group BTS. The police sought the warrant due to an ongoing investigation into alleged investor fraud involving Bang. However, the prosecutors determined that there was insufficient justification for his detention and advised the police to strengthen their case.
Bang, the billionaire founder of Hybe, has been under travel restrictions since August but is not considered a flight risk. He is under investigation for allegedly deceiving investors in 2019 by suggesting that Hybe had no immediate plans to go public, leading them to sell their shares to a private equity fund before the company went public.
Authorities claim that the fund may have made a side deal with Bang, offering him a significant sum in exchange for a share of post-IPO stock sale profits. Bang and Hybe officials deny any wrongdoing, with his legal team emphasizing his full cooperation with the investigation over several months.
These legal challenges present a reputational challenge for Hybe, particularly as BTS embarks on a global tour following a lengthy hiatus due to the members’ military service obligations. The group recently performed for a large crowd of international fans in Seoul and held concerts in Goyang city and Tokyo. Their upcoming U.S. events will commence with a concert in Tampa, Florida, this weekend.