South Korean police have requested a detention warrant for Bang Si-hyuk, billionaire founder of HYBE—the agency behind global K-pop supergroup BTS—over alleged illegal trading linked to the company’s initial public offering.
The Seoul Metropolitan Police Agency said Bang is suspected of violating capital market laws by misleading early investors ahead of HYBE’s listing and steering them to sell shares to a private equity fund linked to his associates.
Police allege that after HYBE went public the fund sold its stake and Bang received about 30% of the profits under a prior shareholder agreement, earning roughly 190 billion won (US$129.1 million) in illicit gains.
Bang has previously denied any wrongdoing. He is also the chairman of HYBE.
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Bang Si-hyuk, chairman of HYBE, speaks during a debate hosted by the Kwanhun club, in Seoul, South Korea, March 15, 2023. Photo by Reuters |
HYBE shares reversed course after the report and were down 2.9% on Tuesday morning in South Korea, compared with a 1.8% rise in the benchmark KOSPI.
The National Police Agency confirmed that the U.S. embassy in Seoul recently sent a letter asking authorities to allow Bang to travel to the United States, despite a travel ban imposed during the investigation.
According to police, the letter sought a temporary suspension of the ban, citing plans for Bang and other senior executives to attend an event to mark U.S. Independence Day and hold talks related to the ongoing BTS global tour.
The U.S. embassy in Seoul said it did not have anything to add on that matter. Bang has been barred from leaving South Korea since August last year.
