South Korean prosecutors have declined a police request for an arrest warrant for Bang Si-Hyuk, the chairman of the company behind K-pop sensation BTS. The police had sought the warrant from the Seoul Metropolitan Police Agency, but the Seoul Southern District Prosecutors’ Office found insufficient grounds to justify Bang’s detention. Despite facing a high-profile investigation into alleged investor fraud, Bang, who is the billionaire founder of Hybe, has been prohibited from leaving the country since August but is not considered likely to flee.
The investigation revolves around accusations that Bang misled investors in 2019 by suggesting that Hybe had no immediate plans for an initial public offering, leading them to sell their shares to a private equity fund. It is alleged that Bang may have received approximately 200 billion won ($185.1 million Cdn) in a side deal from the fund, promising him a share of post-IPO stock sale profits. Bang has refuted any wrongdoing, as stated by Hybe officials, emphasizing that he has been fully cooperative with the investigation for months.
These legal issues pose a challenge for Hybe’s public image, particularly as BTS embarks on a global tour following a lengthy hiatus due to the members’ mandatory military service. BTS recently performed in front of a large audience of international fans at a comeback concert in Seoul and has since held concerts in Goyang city and Tokyo. The group is set to commence a series of events in the U.S., starting with a concert in Tampa, Florida, over the upcoming weekend.
