K-pop mogul Bang Si-hyuk, the man who created supergroup BTS, could be arrested on charges of fraudulent trading before his $7.3bn company went public. South Korean police have asked prosecutors to request a court warrant over accusations that he misled investors in 2019, by claiming a public listing for his conglomerate Hybe was not likely, while secretly preparing for it.
Hybe debuted on South Korea's Kospi bourse in October 2020, and police allege Bang pocketed some 200bn won ($136m; £101m) as a result. He denies the allegations. The case against Bang is longstanding and has seen raids at Hybe's headquarters, some of his assets frozen and calls for him to step down as company chairman. The 53-year-old has maintained that his actions were above board, facing travel bans since August as the probe continues.
The request for a warrant follows BTS's comeback world tour after a nearly four-year hiatus, expected to generate over $1bn for Hybe from sold-out concerts across 34 cities. Shares in the company recently peaked after the tour announcement in January, reflecting its significant market value.
Under South Korean law, those convicted of making 5bn won or more in illicit proceeds face up to life imprisonment. Bang's legacy includes creating BTS, who are recognized globally and have achieved unprecedented milestones in music history, including topping Billboard's Hot 100 and surpassing five billion streams on Spotify.
Hybe maintains its innocence regarding the allegations of illegal activities, claiming compliance with regulations for its initial public offering. The ongoing controversy reflects a broader clampdown on stock manipulation in South Korea, as authorities tighten oversight of financial practices.
Hybe debuted on South Korea's Kospi bourse in October 2020, and police allege Bang pocketed some 200bn won ($136m; £101m) as a result. He denies the allegations. The case against Bang is longstanding and has seen raids at Hybe's headquarters, some of his assets frozen and calls for him to step down as company chairman. The 53-year-old has maintained that his actions were above board, facing travel bans since August as the probe continues.
The request for a warrant follows BTS's comeback world tour after a nearly four-year hiatus, expected to generate over $1bn for Hybe from sold-out concerts across 34 cities. Shares in the company recently peaked after the tour announcement in January, reflecting its significant market value.
Under South Korean law, those convicted of making 5bn won or more in illicit proceeds face up to life imprisonment. Bang's legacy includes creating BTS, who are recognized globally and have achieved unprecedented milestones in music history, including topping Billboard's Hot 100 and surpassing five billion streams on Spotify.
Hybe maintains its innocence regarding the allegations of illegal activities, claiming compliance with regulations for its initial public offering. The ongoing controversy reflects a broader clampdown on stock manipulation in South Korea, as authorities tighten oversight of financial practices.
