South Korean police announced that they are seeking arrest of Bang Si-Hyuk, the billionaire founder and chairman of Hybe on Tuesday, April 21.
The same entertainment agency is behind global K-pop superstars BTS.
The 53-year-old faces accusations of a massive investor fraud scheme. The South Metropolitan Police Agency’s financial crimes unit request for the warrant to detain on the charges of violation of the Capital Markets Act.
The Capital Markets Act (Capital Markets Act or FSCMA) is the main law that regulates financial investment activities in South Korea, implemented on February 4, 2009.
This law consolidated various regulatory measures within one comprehensive body of law based on a functional approach, regulating all types of financial investment activities to increase their competitiveness, along with strict rules for protecting investors and ensuring fair trade practices.
According to the officials, the music mogul gained around 190 billion won ($129 million) in illicit gains during Hybe’s 2020 initial public offering.
The investigation found that he misled early shareholders about the IPO by stating that the company had no plan to go public. This induced them to sell their stakes to a private equity fund that was linked to his associate.
Following this move, Bang received around 30% of the fund’s post-IPO profits via a secret side agreement.
Since August 2025, authorities have barred him from leaving the country. Till now, Bang has denied all accusations.
Following the news, the shares of the company fell by around 3%. For now, BTS has not commented on the ongoing situation.
