The architect of the modern K-pop boom, Bang Si-hyuk, is facing arrest by South Korean police over claims he illegally gained millions in an investor fraud scheme.
The Seoul Metropolitan Police Agency confirmed the move on Tuesday, stating that Bang is suspected of violating national capital market laws. Investigators allege he misled early investors ahead of HYBE’s stock market listing.
According to police, Bang used his position to steer early investors into selling shares to a private equity fund linked to his associates.
Police claim the fund later sold the shares at inflated prices following HYBE’s public debut, driven by global demand for its flagship act, BTS.
Authorities say they uncovered an undisclosed agreement entitling Bang to around 30 per cent of the profits. They estimate he gained roughly 190 billion won (£104 million / $129.1 million), depriving early investors of fair value.
Bang has previously denied any wrongdoing or market manipulation.
HYBE issued a statement on Tuesday, citing Bang’s legal team, criticising the warrant request.
"We regret that a detention warrant has been sought despite our full and consistent cooperation with the investigation over an extended period," the statement read. "We will continue to cooperate with all legal procedures and make every effort to clearly explain our position."
HYBE shares fell 2.4 per cent after the announcement, reversing earlier gains. The drop contrasted with a 2.7 per cent rise in South Korea’s benchmark KOSPI index.
Investors are increasingly concerned about potential disruption to leadership as the company relies heavily on global touring revenue.
The case has also prompted an unusual diplomatic development. The National Police Agency confirmed that the United States Embassy in Seoul requested permission for Bang to travel to the U.S., despite an existing travel ban.
Police said the request cited plans for Bang and HYBE executives to attend a U.S. Independence Day event in July and to hold business talks linked to BTS’s global stadium tour.
A spokesperson for the U.S. Embassy in Seoul told Reuters the embassy "did not have anything to add on that matter."
Bang remains barred from leaving South Korea. Prosecutors at the Seoul Southern District Prosecutors’ Office will review the police request.
If approved, a court hearing is typically held within two to three days, where a judge will decide whether to issue a detention warrant. An arrest would mark an unprecedented moment for the global music industry.
U.S. President Donald Trump said there was an "all-day negotiation" on Tuesday with Iran, characterising the talks positively while also threatening t...
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 5th of August, covering the latest developments....
Turkish top-tier side Trabzonspor said they have begun transfer negotiations with Mohamed Salah, with the club chairman adding they hoped to sign the ...
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has said. Iran refrained from taking action after Kyiv said the strike was a mistake, Mohsen Rezaei told the state IRIB TV channel.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 5th of August, covering the latest developments.
Nauru, the world’s third smallest country, has changed its name to Naoero, the Pacific island nation’s President said. The new name corresponds to the spelling and pronunciation in the national language.
U.S. President Donald Trump said there was an "all-day negotiation" on Tuesday with Iran, characterising the talks positively while also threatening to hit Iran "really hard" if a deal was not reached.
The U.S. has made its visa bond programme permanent for citizens of 50 countries, requiring some business and tourist visa applicants to pay refundable deposits of up to $20,000. Several Central Asian countries remain on the list, but Uzbekistan is not.
Ariana Grande says she will step back from public-facing work after her Eternal Sunshine Tour ends next month, marking a temporary pause in one of pop culture's most visible and closely scrutinised careers.
Spider-Man: Brand New Day has grossed $927 million worldwide during its opening weekend, delivering the second-biggest global and domestic box office debut of all time behind Avengers: Endgame.
Tens of thousands of dancers filled the streets of La Paz on Saturday for Bolivia's annual Gran Poder festival, one of the country's largest cultural celebrations, after the event was postponed twice due to social unrest and road blockades.
French DJ and electropop musician Kavinsky, whose atmospheric sound shaped a generation of electronic music fans, has died at the age of 50, French authorities said on Tuesday.
French television channel Canal+ has confirmed that a fourth live-action Paddington film is in development, building on one of StudioCanal's most successful global franchises.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment