South Korean prosecutors have declined a police request for an arrest warrant for Bang Si-Hyuk, the chairman of Hybe, the agency behind the popular K-pop group BTS. The prosecutors questioned the necessity of detaining Bang as he is under investigation for alleged investor fraud. The Seoul Metropolitan Police Agency had sought a court warrant for Bang’s arrest earlier in the week, but the Seoul Southern District Prosecutors’ Office found the grounds insufficient and instructed police to strengthen their case.
Bang, a billionaire founder, and chairman of Hybe has been prohibited from leaving the country since August. He is being investigated for allegedly misleading investors in 2019 by suggesting that Hybe had no immediate plans to go public, leading them to sell shares to a private equity fund just before the company went public. Police claim that the fund may have paid Bang around 200 billion won in a side deal, promising him a share of post-IPO stock sale profits.
Denying any wrongdoing, Bang’s legal team criticized the police for seeking his arrest, stating that he has been fully cooperating with the investigation for months. The legal issues facing Bang are a setback for Hybe in terms of public relations, coinciding with BTS’s global tour launch after a long hiatus due to the group members’ military service obligations.
BTS recently performed at a free concert in Seoul in front of thousands of international fans and has held concerts in Goyang city, South Korea, and Tokyo. The group is set to start a series of events in the U.S. with a concert in Tampa, Florida, over the coming weekend.