HYBE Chairman Bang Si-Hyuk Faces Arrest Warrant for Alleged Investor Fraud

South Korean police have filed an arrest warrant for Bang Si-Hyuk, the chairman of the music giant HYBE. The Seoul Police Agency requested that prosecutors issue the warrant on charges that Bang illegally obtained over $100 million by deceiving investors in 2019. Bang has been barred from leaving the country since August.

In 2019, Bang provided false information to investors, claiming that HYBE had no plans to go public. Believing this, the investors were persuaded to sell their shares to a private equity firm. HYBE subsequently proceeded with an initial public offering. Police estimate that the private equity firm paid Bang approximately 20 billion won (about $136 million) as part of an arrangement that promised 30% of the profits from selling the shares after the listing.

Bang added, “I will continue to cooperate with all legal procedures and strive to clearly explain my position.” HYBE officials stated that Bang denies the allegations.

Bang founded HYBE in 2005 as Big Hit Entertainment and has been regarded as one of the most influential figures in South Korea’s music industry. In 2021, he acquired Scooter Braun’s Ithaca Holdings for around $1 billion, gaining control over artists such as Justin Bieber and Ariana Grande. HYBE also manages several K-POP groups, including Seventeen, LE SSERAFIM, and Katseye.

This incident is causing significant reputational damage to HYBE and BTS. BTS began a global tour shortly after completing nearly four years of military service. Last month, they held a large-scale free Comeback concert in Seoul, attended by tens of thousands of international fans. Concerts were also held in Goyang, South Korea, and Tokyo, with the group set to start their U.S. tour in Tampa, Florida, at the end of this month.

Bang’s legal troubles are adding further strain to the company’s reputation, coinciding with recent internal conflicts surrounding NewJeans. In 2024, HYBE attempted to remove Min Hee-Jin from her role as CEO of ADOR, NewJeans’ subsidiary, accusing her of illegally taking control of the company. Min responded by alleging Bang’s hostile behavior and discrimination against NewJeans. The NewJeans members referred to Min as their mentor, complicating the dispute further.