South Korean prosecutors have declined a police request to seek an arrest warrant for Bang Si-Hyuk, the billionaire chairman of Hybe, the agency behind K-pop supergroup BTS. The Seoul Southern District Prosecutors' Office announced on Friday that it found the request lacked sufficient grounds to justify detention, instructing police to strengthen their case.
Investigation Details
The Seoul Metropolitan Police Agency had asked prosecutors earlier this week to request a court warrant to arrest Bang, who is under investigation for allegedly misleading investors in 2019. Prosecutors noted that Bang, 53, has been barred from leaving the country since August and is not considered a realistic flight risk.
The allegations center on claims that Bang indicated Hybe had no immediate plans to go public, prompting investors to sell their shares to a private equity fund. Shortly thereafter, the company proceeded with an initial public offering. Police suspect the fund may have paid Bang around 200 billion won ($135 million) in a side deal promising him 30% of post-IPO stock sale profits.
Bang's Defense
Bang denies any wrongdoing, according to Hybe officials. His legal team criticized the police request, stating he has fully cooperated with the investigation for months. The rejection of the arrest warrant request marks a temporary reprieve for Bang, though the investigation continues.
Impact on Hybe and BTS
Bang's legal troubles pose a public relations challenge for Hybe, especially as BTS embarks on a global tour after a nearly four-year hiatus due to mandatory military service for its members. The group recently performed at a free comeback concert in Seoul, drawing tens of thousands of fans, and held shows in Goyang and Tokyo. They are set to kick off a series of U.S. events with a concert in Tampa, Florida, this weekend.
