South Korean police seek arrest of BTS agency founder Bang Si-hyuk over investor fraud allegations South Korean authorities are pursuing the arrest of Bang Si-hyuk, founder and chairman of Hybe Corporation, the entertainment agency behind the global K-pop phenomenon BTS, in connection with an alleged investor fraud scheme tied to the company’s 2020 initial public offering (IPO). Police from the Seoul Metropolitan Police Agency’s financial crimes investigation unit have requested a detention warrant for Bang, alleging he violated South Korea’s Capital Markets Act by misleading early investors ahead of Hybe’s public listing. According to investigators, Bang allegedly steered early shareholders to sell their stakes to a private equity fund linked to his associates, then received approximately 30 percent of the fund’s profits under a prior agreement after the IPO. Authorities state this arrangement resulted in illicit gains of roughly 190 billion won, equivalent to about $129 million, for Bang. The allegations center on claims that the private equity structure was designed to deceive initial investors about the true value and prospects of Hybe shares before the company went public. Bang has consistently denied any wrongdoing throughout the investigation. A statement from Hybe, issued through Bang’s legal counsel, expressed regret that a detention warrant was sought despite the company’s “full and consistent cooperation” with authorities over an extended period. Hybe affirmed its commitment to continue cooperating with all legal procedures and to clearly explain its position. The Seoul Metropolitan Police Agency confirmed that the investigation into Bang is “essentially complete” and would be wrapped up soon. Bang has been barred from leaving South Korea since August 2025 as the probe has progressed. The National Police Agency noted that the U.S. Embassy in Seoul recently sent a letter requesting authorities allow Bang to travel to the United States, despite the existing travel ban. Hybe shares reversed course following the news of the arrest warrant request, declining 2.4% by market close, compared to a 2.7% rise in South Korea’s benchmark Kospi index on the same day. As founder of Hybe, Bang Si-hyuk is credited with transforming the company from a slight music label into a global entertainment powerhouse. Under his leadership, Hybe became home to BTS, the best-selling K-pop act of all time, and expanded through strategic acquisitions and investments in music, technology, and lifestyle sectors worldwide. The case represents one of the most high-profile financial investigations involving a major entertainment industry figure in South Korea, drawing significant attention from both domestic and international media outlets due to Bang’s central role in the global K-pop industry and Hybe’s prominence in the international music business.
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