South Korean prosecutors have declined a police request for an arrest warrant for Bang Si-Hyuk, the chairman of the agency behind the K-pop sensation BTS. The prosecutors questioned the necessity of detention as Bang faces a high-profile investigation into alleged investor fraud.
The Seoul Metropolitan Police Agency had sought a court warrant to arrest Bang earlier this week. However, the Seoul Southern District Prosecutors’ Office determined that the request lacked sufficient grounds for his detention. They advised police investigators to bolster 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 under investigation for allegedly deceiving investors in 2019 by suggesting that Hybe had no immediate plans for an IPO. This led investors to sell their shares to a private equity fund shortly before the company went public.
Police claim that a side deal with the fund may have involved a payment of approximately 200 billion won ($185.1 million Cdn) to Bang, promising him 30% of post-IPO stock sale profits. Bang and Hybe officials deny any wrongdoing, with his legal team criticizing the police for seeking his arrest, noting his full cooperation with the investigation.
These legal challenges pose a public relations setback for Hybe as BTS embarks on a global tour following a four-year hiatus due to the members fulfilling mandatory military service. The group recently performed at a free concert in Seoul, attracting tens of thousands of international fans. They have also held concerts in Goyang city and Tokyo, with upcoming events scheduled in the U.S., starting with a concert in Tampa, Florida, this weekend.