HYBE Chairman Bang Subject to Arrest Warrant for Alleged Investor Fraud

The Seoul Police Agency has filed an arrest warrant request for HYBE’s chairman, Bang, on charges of violating the Capital Market Act. Bang is accused of falsely informing investors in 2019 that the company had no plans to go public, thereby prompting them to sell their shares to private equity firms.

The police believe that after those private equity firms sold their shares following the public listing, Bang improperly obtained approximately 19 billion won (129.1 million dollars), equivalent to around 30% of the profits, under pre-shareholder agreements. The prosecutor’s office will review the arrest warrant request before submitting an application to the court for an detention order, with courts typically conducting warrant hearings within 2 to 3 days.

Bang has been under a travel ban since August while under investigation. HYBE and Bang’s legal teams issued a statement expressing regret over the application for a detention order despite their “honest and continuous cooperation” with the investigation, stating they will “continue to cooperate with all legal procedures and make every effort to clarify their position.” Bang denies the allegations.

The U.S. Embassy recently sent a letter to South Korean authorities requesting a temporary lifting of the travel ban, citing plans by Bang and company executives to attend U.S. Independence Day events and hold discussions related to BTS’s global tour. The National Police Agency has confirmed receipt of this letter.

Bang is a music producer who founded Big Hit Entertainment (HYBE’s predecessor) in 2005 and is currently regarded as one of the most influential figures in the K-POP industry. BTS is set to make a comeback about four years after all seven members completed their military service and is currently on a global tour.