South Korean police are seeking an arrest warrant for Bang Si-hyuk, chairman of HYBE and founder of the agency behind BTS, in connection with an alleged investor fraud scheme tied to the company’s 2020 initial public offering.
The Seoul Metropolitan Police Agency confirmed Tuesday that it has asked prosecutors to request a court warrant for Bang’s arrest, alleging he misled early investors by claiming HYBE had no plans to go public, prompting them to sell shares to a private equity fund before the IPO proceeded. Police say the fund later paid Bang approximately 190 to 200 billion won ($129 million to $136 million) under a side agreement granting him 30% of post-IPO profit distributions.
Bang has been under investigation since November 2024 and barred from leaving South Korea since August of last year. He has denied wrongdoing, though his legal team expressed regret that police are pursuing arrest despite what they described as full cooperation. “We will continue to cooperate with all legal procedures and make every effort to clearly explain our position,” his representatives told The Associated Press.
The allegations center on a private equity arrangement that authorities say was structured to conceal Bang’s financial gain from early shareholders. According to the Seoul Metropolitan Police Agency’s financial crimes unit, Bang violated South Korea’s Capital Markets Act by securing illicit gains through undisclosed profit-sharing deals linked to the IPO process.
Hybe has not issued a public response to the warrant request, though its shares fell as much as 2.9% in trading following the news. In December, the Seoul Southern District Court approved a provisional seizure of Bang’s Hybe shares valued at 156.8 billion won ($118 million). Police have questioned him five times as part of the probe, which financial authorities began in December 2024 after reviewing potential violations ahead of the listing.
Police raided Hybe’s Seoul headquarters in July 2025, and Bang returned voluntarily the following month to cooperate. Seoul police commissioner Park Jung-bo said the investigation is “essentially complete” and an announcement on next steps is expected soon. Authorities are deciding whether to pursue arrest or refer the case to prosecutors without detention.
The case unfolds as BTS prepares for a global tour after a nearly four-year hiatus due to mandatory military service. The group performed a free comeback concert in Seoul last month for tens of thousands of international fans and has held additional shows in Goyang and Tokyo. Their U.S. Tour kicks off later this month in Tampa, Florida.
Hybe denied on Monday that it sought assistance from the U.S. Embassy in Seoul to lift Bang’s travel ban, countering reports that the embassy had contacted Korean police requesting permission for Bang and other executives to attend a July 4 Independence Day event in Washington, D.C. The embassy cited support for BTS’ world tour “Arirang,” which launches in the U.S. Later this month.
The U.S. Embassy declined to comment on the matter, and Seoul police said they had not received such a request. Commissioner Park noted that if a letter had been sent to the Korean National Police Agency, it would be reviewed according to legal principles — though he confirmed Seoul police were not informed of its receipt.
Lifting a travel ban in South Korea requires review by the Ministry of Justice based on a request from investigative authorities. Police are expected to decide soon whether to seek formal arrest or proceed without detention.
What specific charges is Bang Si-hyuk facing?
Bang is accused of fraudulent and unfair trading under South Korea’s Capital Markets Act, specifically for misleading investors ahead of Hybe’s 2020 IPO by concealing plans to go public and profiting from a private equity fund linked to associates.
How much money is allegedly involved in the scheme?
Police allege Bang secured roughly 190 to 200 billion won ($129 million to $136 million) in illicit gains through a side deal that entitled him to 30% of post-IPO profits from a private equity fund that purchased shares from early shareholders.
Why is Bang Si-hyuk barred from leaving South Korea?
Bang has been subject to an overseas travel restriction since August 2024 as part of the ongoing Capital Markets Act investigation, which prevents him from leaving the country while authorities assess potential flight risk or evidence tampering.
How has HYBE responded to the arrest warrant request?
Hybe has not issued a public statement on the warrant request, though its shares dropped as much as 2.9% in trading. The company previously denied involvement in any effort to seek U.S. Embassy assistance to lift Bang’s travel ban.
