Authorities in South Korea have filed for an arrest warrant against Bang Si-hyuk, the chairman and creator of HYBE, the entertainment giant that manages world-famous K-pop group BTS, in connection with alleged securities fraud.
The Seoul Metropolitan Police Agency announced that Bang is accused of breaking financial market regulations by providing false information to early investors before HYBE’s stock market debut and directing them to transfer shares to a private equity firm connected to his business partners.
Investigators claim that following HYBE’s public listing, the equity firm disposed of its holdings, and Bang collected approximately 30% of the proceeds through a previously established shareholder deal, netting around 190 billion won ($129.1 million) in unauthorized profits.
Bang has previously denied any wrongdoing.
HYBE did not have an immediate comment when contacted by Reuters.
Bang is also the founder of HYBE, the music powerhouse behind global Kpop supergroup BTS.
Following news of the warrant request, HYBE’s stock price dropped 2.9% as of 0215 GMT, contrasting with a 1.8% increase in South Korea’s main KOSPI index.
The National Police Agency revealed that the American embassy in Seoul recently submitted a formal request asking officials to permit Bang to visit the United States, despite an existing travel restriction during the ongoing probe.
Police stated the embassy’s correspondence requested a temporary lifting of the prohibition, referencing scheduled appearances by Bang and other top company officials at a July 4th celebration and discussions regarding BTS’s continuing world tour.
The U.S. embassy in Seoul said it did not have anything to add on that matter.
Bang has been prohibited from departing South Korea since August of last year.
