South Korean prosecutors have declined a police request to issue an arrest warrant for Bang Si-Hyuk, the chairman of the agency managing K-pop sensation BTS, citing doubts about the necessity of his detention amid a high-profile investigation into alleged investor fraud. The Seoul Metropolitan Police Agency had urged prosecutors to seek a court warrant for Bang’s arrest, but the Seoul Southern District Prosecutors’ Office found insufficient grounds for his detention and advised the police to bolster their case.
Bang, the billionaire founder of Hybe, has been prohibited from leaving the country since August but is not considered likely to flee. The 53-year-old is under scrutiny for allegedly deceiving investors in 2019 by suggesting that Hybe had no immediate plans for a public offering, leading them to sell shares to a private equity fund shortly before the company went public. Police claim that a side deal with the fund may have involved a payment of around 200 billion won ($185.1 million Cdn) to Bang, promising him 30% of post-IPO stock sale profits.
While Bang denies any misconduct, Hybe officials affirm his innocence, with his legal team criticizing the police for pursuing his arrest despite his full cooperation with the investigation over several months. These legal challenges have posed a reputational challenge for Hybe as BTS embarks on a global tour following a nearly four-year hiatus due to the members’ mandatory military service. BTS recently performed at a free concert in Seoul, attracting thousands of international fans, and has also held concerts in Goyang city and Tokyo. The group is set to begin a series of events in the United States with a concert in Tampa, Florida, this weekend.
