South Korean police have moved to arrest Hybe Chairman Bang Si-hyuk as they expand an investigation into alleged investor fraud linked to the company behind BTS. The case centers on allegations that Pang misled investors before Hybe’s stock market debut and then profited from a private deal worth more than 200 billion won, or about US$136 million.
The development falls at a tense moment for Hybe, with BTS returning to the road after completing military service and the company already facing scrutiny over internal disputes.
Bang Si Hyuk’s arrest case and fraud allegations
The Associated Press reported on Tuesday that the Seoul Metropolitan Police Agency had asked prosecutors to obtain a court warrant to arrest Pang. Police are investigating allegations that he told investors in 2019 that Hybe had no plans to go public, prompting some to sell their shares to a private equity fund.
Investigators believe the fund later paid Pang about 200 billion won under a side agreement that promised him 30 percent of profits from stock sales after the IPO.
Pang has been under a travel ban since August.Pang’s legal team did not respond directly to the accusations in a statement to The Associated Press. Instead, she expressed regret that the police were seeking to arrest him “despite our full and continued cooperation with the investigation over a long period.”
The statement added: “We will continue to cooperate with all legal procedures and will do our best to clarify our position.” Haibei officials also said that Pang denies any wrongdoing.
Hybe BTS returns and company turmoil
The investigation creates a major problem for Hybe’s image as BTS resumes its global activities after a nearly four-year hiatus linked to South Korea’s mandatory military service rules. The group held a free comeback concert in Seoul last month in front of tens of thousands of fans, then continued their performances in Goyang and Tokyo.
BTS is also scheduled to kick off a series of US events with a concert in Tampa, Florida, later this month.Bang founded Hybe (then called Big Hit Entertainment) in 2005 and helped turn BTS into a global powerhouse. In 2021, the company spent about $1 billion to acquire Scooter Braun’s Ithaca Holdings. Hybe also manages acts including Seventeen, Le Sserafim and Katseye. At the same time, it dealt with a public battle between Bang and producer Min Hee-jin over NewJeans, a dispute that went to court and continues to cast a pall over the company.Disclaimer: The information in this report is based on a legal hearing as reported by an external source. The details provided represent claims made by the parties involved and are not proven facts. The case is still ongoing, and no final ruling has been reached. The publication does not claim that these allegations are true.
