Police Seek Indictment of BTS Agency Chief Over Investor Fraud Allegations
Seoul police refer Hybe's Bang Si-Hyuk for indictment over alleged investor fraud tied to a 2019 share sale before BTS agency's IPO.
South Korean police have formally recommended the indictment of Bang Si-Hyuk, the billionaire founder and chairperson of Hybe, the entertainment agency behind K-pop supergroup BTS, on charges of violating the country's capital markets act.
The referral was made on Thursday to the Seoul Southern District Prosecutors' Office, according to the Seoul Metropolitan Police Agency and the prosecutor's office. The move follows a lengthy investigation into allegations that Bang misled investors in 2019 by suggesting Hybe had no immediate plans to go public, prompting them to sell their shares to a private equity fund shortly before the company launched its initial public offering.
Police have previously indicated that the fund may have paid Bang around 200 billion won (approximately $147 million) in a side deal that promised him 30% of post-IPO stock sale profits. South Korean media also reported that police referred four other individuals, including Hybe executives and private equity fund officials, for indictment on the same day.
Bang's legal team has denied any wrongdoing, stating in a Thursday statement: "We have consistently responded to the allegations with objective evidence and facts. We expect the allegations to be fully and transparently resolved through the legal process."
This is not the first time authorities have sought action against Bang. Police previously requested his arrest twice in April and May, but prosecutors rejected those requests, citing insufficient grounds and a failure to comply with demands for further investigation. Observers suggest prosecutors may again ask for additional police work rather than indicting Bang immediately.
The legal developments come as BTS recently returned from a nearly four-year musical hiatus, which was largely due to the band members' mandatory military service in South Korea. The group has since launched a much-anticipated world tour, drawing renewed global attention to Hybe and its leadership.