Hybe Chairman Bang Si-Hyuk Faces Arrest Warrant in Investor Fraud Investigation
South Korean authorities are seeking to arrest Bang Si-Hyuk, the chairman of Hybe, the agency behind K-pop sensation BTS, as part of an investigation into alleged investor fraud. The Seoul Metropolitan Police Agency has requested an arrest warrant for Bang, who is accused of illegally gaining over $100 million. Despite cooperating with the investigation, Bang's legal team expressed regret over the arrest warrant request and vowed to clarify their position.
Bang has been prohibited from leaving South Korea since August due to allegations that he misled investors in 2019 about Hybe's plans to go public. It is believed that a private equity fund paid Bang around $136 million in a side deal, potentially guaranteeing him 30% of post-IPO stock sale profits. Hybe officials maintain that Bang denies any wrongdoing.
As the founder of Hybe (formerly Big Hit Entertainment), Bang has been a prominent figure in the K-pop industry, leveraging the success of BTS to expand the company's reach. In 2021, Hybe acquired Scooter Braun's Ithaca Holdings for approximately $1 billion, gaining management rights to artists like Justin Bieber and Ariana Grande. The timing of Bang's legal issues coincides with BTS's global comeback tour after a four-year hiatus for mandatory military service.
BTS recently performed in Seoul, Goyang city, and Tokyo, with upcoming U.S. events scheduled to begin in Tampa, Florida. Despite Bang's legal troubles, representatives for BTS have not commented on the situation. The group's return to the spotlight comes amidst uncertainty surrounding their agency's founder, as investigations into the alleged investor fraud continue.