Law enforcement officials in South Korea have filed paperwork requesting the arrest of Bang Si-hyuk, who leads HYBE, the entertainment giant that manages worldwide K-pop phenomenon BTS.
Authorities with the Seoul Metropolitan Police Agency accuse Bang of breaking financial regulations by providing false information to early investors before HYBE became a publicly traded company and directing them to transfer shares to a private investment firm connected to his business partners.
Investigators claim that following HYBE’s public debut, the investment firm disposed of its holdings, with Bang collecting approximately 30% of the proceeds through a previously established shareholder deal, netting him around 190 billion won, equivalent to $129.1 million in unauthorized profits.
Bang has consistently maintained his innocence regarding these allegations.
HYBE released a statement Tuesday through Bang’s attorneys expressing disappointment: “We regret that a detention warrant has been sought despite our full and consistent cooperation with the investigation over an extended period.”
The statement continued: “We will continue to cooperate with all legal procedures and make every effort to clearly explain our position.”
Bang established HYBE, the entertainment empire responsible for launching the internationally acclaimed K-pop group BTS.
Following news of the warrant request, HYBE’s stock price shifted direction and closed down 2.4%, while South Korea’s primary stock index KOSPI gained 2.7%.
The National Police Agency verified that the American embassy in Seoul recently submitted correspondence requesting permission for Bang to visit the United States, despite travel restrictions currently in place due to the ongoing investigation.
Police sources indicate the embassy’s letter requested a temporary lifting of the travel prohibition, referencing Bang’s planned attendance with other company leadership at a U.S. Independence Day celebration and discussions regarding BTS’s continuing world tour.
Embassy officials in Seoul declined to provide additional comments on the matter.
Bang has been prohibited from departing South Korea since August of last year.
The Seoul Southern District Prosecutors’ Office will examine the warrant application, and should prosecutors move forward with detention proceedings, local court procedures typically schedule a hearing within two to three days to determine whether to authorize Bang’s arrest, according to regional media reports.
