South Korean prosecutors have declined a police request to issue an arrest warrant for music mogul Bang Si-Hyuk, who is the chairman of the company overseeing K-pop sensation BTS. The prosecutors questioned the necessity of detaining Bang as he is under investigation for alleged investor fraud. The Seoul Metropolitan Police Agency had requested the arrest warrant earlier in the week, but the Seoul Southern District Prosecutors’ Office found the grounds for detention insufficient and advised the police to strengthen their case.
Bang, the billionaire founder of Hybe, has been prohibited from leaving the country since August but is not considered likely to flee. The 53-year-old is being probed for allegedly deceiving investors in 2019 by suggesting that Hybe had no immediate plans for a public listing, leading them to sell shares to a private equity fund just before the company went public. Police suspect that a side deal involving approximately 200 billion won ($185.1 million Cdn) may have granted Bang 30% of post-IPO stock sale profits.
Despite the allegations, Bang denies any misconduct, according to Hybe officials. His legal team has criticized the police for pursuing his arrest, emphasizing that he has been fully cooperating with the investigation for several months. These legal challenges faced by Bang are seen as a setback for Hybe in terms of public relations, particularly as BTS embarks on a global tour following a lengthy break due to the members’ mandatory military service.
Recently, BTS delighted tens of thousands of international fans with a comeback concert in Seoul. The group has also performed in Goyang city and Tokyo in South Korea and will soon kick off a series of events in the U.S., starting with a concert in Tampa, Florida, this weekend.
