Police Apply for the Arrest of Bang Si-hyuk, BTS Agency Boss

South Korean police are taking the case of Bang Si-hyuk, the figure behind HYBE, the agency that raised BTS to a higher stage. The Seoul Metropolitan Police confirmed that it had asked prosecutors to file an arrest warrant against Bang. The move was taken as the investigation into alleged investor fraud continued to expand.

According to a Kyodo News report quoted on Tuesday, April 21, Bang allegedly misled investors in 2019 by saying that HYBE had no plans to list on the exchange. The statement allegedly made investors sell their shares to a private equity fund. After that, HYBE actually continued the initial public offering or IPO.

Police suspect that there was an agreement outside the main transaction. The funds are believed to have paid Bang around 200 billion won, equivalent to US$136 million, through a promise to share 30 percent of the profits from the sale of shares after the IPO.

Bang's side did not directly address the allegations. In a statement to the Associated Press, his legal team regretted the police's move to seek an arrest, "even though we have cooperated fully and consistently" during the investigation. They also said they would continue to follow the entire legal process and explain their position.

This case has attracted attention because Bang is not a small figure in the K-pop industry. He founded HYBE in 2005 when the company was still called Big Hit Entertainment. Under his control, HYBE has grown to be home to a number of big names, ranging from BTS, Seventeen, Le Sserafim, to Katseye.

Still launching Kyodo News, this case came up when HYBE was in the spotlight. BTS has only returned to active duty after almost four years of vacuum because its members are undergoing military service. Last month, the group performed at a free comeback concert in Seoul in front of tens of thousands of international fans. They also held several concerts in Goyang and Tokyo.

In the near future, BTS is scheduled to open a series of events in the United States with a concert in Tampa, Florida, later this month.

HYBE's burden is not only because the value of the case is large, but also because the case exploded when BTS just returned to active service. Bang and HYBE's own names are deeply ingrained with BTS, a group whose influence goes far beyond the music stage.