South Korean police have asked prosecutors to request an arrest warrant for Bang Si-hyuk, founder of Hybe and the executive behind K-pop group BTS, over allegations of fraudulent trading linked to the company’s stock market debut, the BBC reported.
Authorities allege that in 2019 Bang misled investors by suggesting that a public listing of Hybe was unlikely, while preparations for an initial public offering were already underway. The company was later listed on South Korea’s Kospi exchange in October 2020. Investigators say the actions resulted in approximately $136 million in gains.
Bang has denied the allegations and maintains that his actions were lawful. The case has been ongoing for several years and has involved raids on Hybe’s headquarters, asset freezes and a travel ban since August.
The warrant request comes weeks after BTS, widely seen as the company’s main source of revenue, launched a global comeback tour following a four-year hiatus. The tour, which spans dozens of cities, is expected to generate as much as $1 billion. Hybe’s shares rose sharply earlier this year after the tour was announced, adding substantially to its market value.
The investigation is part of a broader scrutiny of stock market practices in South Korea, as authorities intensify efforts to crack down on market manipulation and illegal trading. Under South Korean law, those convicted of generating large illicit profits can face prison sentences ranging from several years to life imprisonment.
