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 long-running, involving raids at Hybe's headquarters and freezing of some of his assets, amidst calls for him to step down as company chairman.
The 53-year-old has maintained that his actions were above board and has been banned from travelling abroad since August while the investigation continues. This request for a warrant comes just weeks after BTS, Hybe's crown jewel, kicked off a world tour after a nearly four-year hiatus, with industry watchers estimating that Hybe stands to make over $1bn from it.
When BTS announced their world tour, Hybe's shares hit a four-year high, adding over 1 trillion won to its market value. Bang, instrumental in taking BTS global, described the group as a tourist attraction in a recent interview with Billboard.
Under South Korean law, individuals convicted of illicit proceeds exceeding 5bn won face five years to life imprisonment. The investigation into Bang coincides with a broader governmental effort to crack down on stock market manipulation, with enhanced penalties being proposed by President Lee Jae Myung and the establishment of a specialized team tasked to combat these illegal practices. Bang's legal team expressed regret over the police's request for an arrest warrant, stating they would continue to cooperate with the legal procedures.
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 long-running, involving raids at Hybe's headquarters and freezing of some of his assets, amidst calls for him to step down as company chairman.
The 53-year-old has maintained that his actions were above board and has been banned from travelling abroad since August while the investigation continues. This request for a warrant comes just weeks after BTS, Hybe's crown jewel, kicked off a world tour after a nearly four-year hiatus, with industry watchers estimating that Hybe stands to make over $1bn from it.
When BTS announced their world tour, Hybe's shares hit a four-year high, adding over 1 trillion won to its market value. Bang, instrumental in taking BTS global, described the group as a tourist attraction in a recent interview with Billboard.
Under South Korean law, individuals convicted of illicit proceeds exceeding 5bn won face five years to life imprisonment. The investigation into Bang coincides with a broader governmental effort to crack down on stock market manipulation, with enhanced penalties being proposed by President Lee Jae Myung and the establishment of a specialized team tasked to combat these illegal practices. Bang's legal team expressed regret over the police's request for an arrest warrant, stating they would continue to cooperate with the legal procedures.
