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.
Donald Trump said he is “in no hurry” to reach a deal with Iran, insisting the U.S. is slowly getting what it wants. He warned military action rem...
Malta’s Prime Minister Robert Abela has secured a fourth successive election victory for his Labour Party, extending its hold on power, though with ...
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing h...
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Mya...
Thousands of residents blocked Austria’s Brenner motorway on Saturday (30 May), shutting down a major north-south transport route through the Alps i...
Donald Trump said he is “in no hurry” to reach a deal with Iran, insisting the U.S. is slowly getting what it wants. He warned military action remains an option if talks fail. Meanwhile, U.S. forces said they fired a missile at a vessel trying to breach Washington’s blockade of Iran.
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing his family.
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Myanmar, according to local media reports.
Thousands of residents blocked Austria’s Brenner motorway on Saturday (30 May), shutting down a major north-south transport route through the Alps in protest against persistent congestion from heavy truck traffic and tourism.
U.S. rapper Kanye West, now known as Ye, performed to a crowd of 118,000 people in Istanbul on Saturday night, marking his first concert in Europe in more than a decade, despite being barred from performing in several countries over past antisemitic remarks.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May), drawing attention from defence observers and regional analysts.
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
U.S. rapper Kanye West, now known as Ye, performed to a crowd of 118,000 people in Istanbul on Saturday night, marking his first concert in Europe in more than a decade, despite being barred from performing in several countries over past antisemitic remarks.
A centuries-old floral tradition is being prepared in the English village of Castleton, where the Garland King will lead a ceremonial procession through the Peak District wearing a large flower-covered structure weighing up to 40 kilograms.
The trial of a 21-year-old accused of planning an Islamist attack at a Taylor Swift concert in Vienna entered its final day on Thursday (28 May), with a verdict expected later in the evening.
Thousands of visitors flocked to Hong Kong’s Cheung Chau island on Sunday for the annual Bun Festival, as crowds gathered to watch the famous “floating children” parade and prepare for the traditional midnight bun-scrambling competition.
Spanish police in Catalonia have detained Jonathan Andic, the son of Mango fashion group founder Isak Andic, as part of an ongoing investigation into the circumstances surrounding his father’s death in December 2024, authorities said.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment