South Korean police are seeking the indictment of Bang Si-Hyuk, the influential chairperson of Hybe Corporation and the architect behind the global K-pop sensation BTS, on allegations of investor fraud. The Seoul Metropolitan Police Agency submitted the case to the Seoul Southern District Prosecutors’ Office on Thursday, requesting Bang be indicted for violating the capital markets act.
Investigators have been examining claims that Bang misled investors in 2019. At that time, it is alleged he indicated Hybe had no immediate plans for an initial public offering. This, according to the police, prompted investors to sell their shares to a private equity fund just before the company announced its IPO.
Police previously stated that the private equity fund may have engaged in a side deal with Bang, potentially paying him around 200 billion won (approximately $147 million) which promised him 30% of post-IPO stock sale profits. South Korean media reports indicate that four other individuals, including Hybe executives and officials from the private equity fund, were also referred to prosecutors with recommendations for indictment.
Bang's legal team has asserted his innocence, stating in a released statement, "We have consistently responded to the allegations with objective evidence and facts. We expect the allegations to be fully and transparently resolved through the legal process."
This development comes as BTS has recently launched a highly anticipated world tour, marking their return after a nearly four-year hiatus, partly due to the mandatory military service of band members in South Korea.
Previously, police had sought arrest warrants for Bang in April and May. However, prosecutors rejected both requests, citing insufficient grounds for arrest and a failure by the police to comply with demands for further investigation. Analysts suggest that prosecutors might again request additional investigation from the police rather than proceeding directly with an indictment.