Seoul police have applied for a warrant to detain Bang Si-hyuk, chair and founder of Hybe, over alleged securities fraud tied to the K-pop conglomerate’s public listing, Reuters reported.
Bang established Hybe – then known as Big Hit Entertainment – in 2005, building it into the most powerful company in the K-pop industry. The Seoul-based group is home to BTS, Seventeen, Le Sserafim and Katseye, among others.
Authorities allege that Bang gave early shareholders false assurances in 2019 that a stock market debut was not on the horizon, inducing them to sell their stakes to a private equity vehicle connected to his associates. According to Reuters, once Hybe went public the fund exited its position, and Bang is suspected of collecting around 30% of those proceeds through a prior arrangement with shareholders – generating an estimated KRW190 billion ($129.1 million) in illegal profits. Reuters reported that Bang has previously denied wrongdoing and that Hybe declined to respond when approached for comment.
The legal exposure is severe. The Korea Times noted that under the Capital Market Act, any person who nets KRW5 billion or more by making false representations about a financial product faces a prison term of at minimum five years, with a life sentence possible at the upper end.
The Korea Times also reported that investigators received their first information about the alleged conduct in late 2024 and moved to search both the Korea Exchange and Hybe’s headquarters the following year. Bang has been questioned five times and held under a travel ban – a restriction that drew a diplomatic response, with the U.S. Embassy in Seoul writing to the police agency to request that Bang be allowed to enter the country in connection with BTS’s world tour.
Hybe’s stock swung sharply on the news, Reuters reported, dropping 2.9% at a point when South Korea’s broader KOSPI index was trading up 1.8%. The timing is particularly sensitive for the company: BTS drew tens of thousands of fans to a free comeback concert in Seoul last month – the group’s first live shows after nearly four years away during which members fulfilled mandatory military obligations – and has since played further dates in Goyang and Tokyo. A U.S. leg of the tour is due to open in Tampa, Fla., later this month. A court must still approve the warrant before Bang can be taken into custody.
