South Korean police have filed for an arrest warrant for Bang Si-Hyuk, the founder and chairman of HYBE, the entertainment conglomerate behind some of K-pop's biggest acts, including the globally renowned boy band BTS. Authorities allege that Bang deceived investors in 2019 by falsely assuring them that HYBE had no plans to list on the stock exchange, inducing them to sell their shares to a private equity fund. The company subsequently proceeded with an initial public offering (IPO), and police believe Bang received approximately 200 billion won (around $136 million) through a side arrangement that guaranteed him 30% of post-IPO stock sale profits. The Seoul Metropolitan Police Agency confirmed it had submitted the warrant request to the Seoul Southern District Prosecutors Office, citing suspicions of fraudulent trading under South Korea's Capital Market Act — a law that carries penalties ranging from five years to life imprisonment for those found guilty of making 5 billion won or more in illegal profits through deception about financial investment products.
Bang's legal team has denied the allegations, insisting that HYBE's IPO was conducted in full compliance with the law and regulations. In a statement, Bang described the warrant request as "regrettable" given what he called his "faithful cooperation" with investigators over an extended period, and pledged to continue engaging with legal proceedings. Police, who first received a tip about the alleged scheme in late 2024 and subsequently raided both the Korea Exchange and HYBE's headquarters, had already banned Bang from leaving the country in August, restricting his movements. The US Embassy in Seoul reportedly sent a letter to South Korean authorities asking that he be permitted to travel to the United States to participate in BTS's ongoing world tour.
Bang, 53, founded what is now HYBE in 2005 as Big Hit Entertainment, building it into a global entertainment powerhouse with an estimated personal stake in the company valued at around $3.6 billion. Beyond BTS — the first K-pop act to reach number one on the US Billboard Hot 100, with their 2020 hit "Dynamite" — HYBE also manages popular groups including Seventeen, Le Sserafim, and Katseye.
The legal developments come at a particularly sensitive moment for HYBE. BTS, the company's flagship act, recently concluded nearly four years off the stage while its seven members fulfilled South Korea's mandatory military service obligation. The group staged a high-profile free comeback concert in Seoul last month, drawing tens of thousands of international fans, and has since performed in Goyang and Tokyo. The band is set to begin a series of US dates later this month in Tampa, Florida, with a UK leg of the tour scheduled for July. The arrest warrant proceedings represent a significant reputational challenge for HYBE just as its most valuable asset returns to the global stage.