Police Seek Arrest of BTS Creator Bang Si-hyuk Over Alleged $136m Fraud Linked to Hybe IPO

South Korean police have requested prosecutors to seek an arrest warrant for K-pop mogul Bang Si-hyuk, the founder of BTS’s management company Hybe, over allegations of fraudulent trading linked to the company’s stock market listing.

Bang, widely known as the creator of global supergroup BTS, is accused of misleading investors in 2019 by claiming that a public listing of Hybe was unlikely, while allegedly preparing for the IPO in secret. Authorities say this may have influenced investors to sell their shares under false assumptions.

Hybe eventually debuted on South Korea’s Kospi stock exchange in October 2020, with police alleging that Bang personally gained around 200 billion won ($136 million) from the arrangement. He denies all wrongdoing.

The case has led to multiple raids at Hybe’s headquarters, frozen assets, and growing pressure for Bang to step down as chairman. He has also been banned from leaving South Korea since August while investigations continue.

The request for an arrest warrant comes shortly after BTS announced a global comeback tour following a nearly four-year hiatus, with industry analysts predicting Hybe could earn over $1 billion from the sold-out concerts.

Hybe’s stock value surged after the announcement of the tour, briefly adding more than 1 trillion won to its market capitalisation.

Bang Si-hyuk, often called “Hitman Bang,” is a key figure in modern K-pop history. He co-founded JYP Entertainment in 1997 before launching Big Hit Entertainment, later renamed Hybe. Under his leadership, BTS became the first Korean act to top the Billboard Hot 100 and one of the most successful music groups in the world.

Authorities allege that Bang entered undisclosed profit-sharing agreements with private equity firms before Hybe’s IPO, potentially misleading investors and earning a cut of the profits when shares were later sold after the listing.

If convicted of making illicit gains exceeding 5 billion won, South Korean law allows penalties ranging from five years in prison to life imprisonment.

Bang’s legal team has denied all allegations, saying they will fully cooperate with investigations and clarify his position.

Hybe has also denied wrongdoing, stating that relevant agreements were disclosed to IPO underwriters and approved as not requiring public disclosure.

The investigation is part of a wider crackdown on stock manipulation in South Korea, where authorities have increased enforcement and penalties for financial crimes involving major corporations and public figures.