SEOUL, South Korea — Prosecutors in South Korea have declined a police request to arrest Bang Si-Hyuk, the billionaire music executive who chairs the company that manages global K-pop sensation BTS, citing insufficient grounds for detention in a major investor fraud investigation.
The Seoul Metropolitan Police Agency had sought an arrest warrant earlier this week for Bang, who founded and leads Hybe. However, the Seoul Southern District Prosecutors’ Office determined the police request didn’t provide adequate justification for holding the executive and directed investigators to build a stronger case.
Bang has been prohibited from traveling outside South Korea since August, though authorities don’t consider him a significant flight risk.
The 53-year-old executive faces accusations of deceiving investors in 2019 by suggesting Hybe had no immediate intentions of becoming a publicly traded company, leading investors to sell their stakes to a private equity firm just before the company launched its stock market debut.
Investigators suspect the private equity fund may have paid Bang approximately 200 billion won ($135 million) through a separate agreement that guaranteed him 30% of profits from stock sales following the public offering.
According to Hybe representatives, Bang maintains his innocence. His attorneys have condemned the police effort to arrest him, emphasizing that he has fully participated in the investigation for several months.
The legal challenges facing Bang create unwelcome publicity for Hybe as BTS embarks on a worldwide tour following a nearly four-year break while the group’s seven members completed required military service.
BTS recently performed before thousands of international fans at a free reunion concert in Seoul and has since held shows in Goyang city, South Korea, and Tokyo. The band is scheduled to begin its American tour dates with a performance in Tampa, Florida, this weekend.
