South Korean prosecutors have declined a police request to issue an arrest warrant for Bang Si-Hyuk, the chairman of the agency managing the popular K-pop group BTS. The police had urged prosecutors to seek a court warrant for Bang’s arrest, citing allegations of investor fraud. However, the Seoul Southern District Prosecutors’ Office determined that there was insufficient evidence to justify his detention and advised the police to strengthen their case.
Bang, the billionaire founder of Hybe, has been under investigation since August and is prohibited from leaving the country. He is being scrutinized for allegedly misleading investors in 2019 by suggesting that Hybe had no immediate plans for a public offering, leading them to sell their shares to a private equity fund just before the company went public. Police suspect that the fund may have made a side agreement with Bang, offering him a significant sum in exchange for a share of post-IPO stock sale profits.
Despite the accusations, Bang denies any misconduct, as confirmed by Hybe officials. His legal team has criticized the police’s move to seek his arrest, highlighting his full cooperation with the investigation over several months.
These legal challenges pose a reputational challenge for Hybe as BTS embarks on a global tour following a lengthy hiatus due to the members fulfilling mandatory military service. The group recently performed for a large audience during a comeback concert in Seoul and has also held shows in Goyang city and Tokyo, with upcoming U.S. events scheduled to commence in Tampa, Florida.
[Source: CBC News]