SEOUL – South Korean authorities are seeking to have Bang Si-hyuk, the influential music executive behind BTS’ agency Hybe, formally indicted over allegations tied to investor fraud.
The Seoul Metropolitan Police Agency sent the case to the Seoul Southern District Prosecutors’ Office on Thursday, recommending that Bang face charges for allegedly breaching South Korea’s capital markets law, police and prosecutors said.
Bang, the billionaire founder and chairperson of K-pop powerhouse Hybe, has been under police investigation over claims that he gave investors the impression in 2019 that the company had no near-term plans for a stock market listing. Investigators allege that this led some shareholders to sell their stakes to a private equity fund not long before Hybe moved ahead with its initial public offering.
Police previously said the private equity fund may have arranged a separate agreement with Bang, potentially paying him about 200 billion won, or roughly $147 million, in exchange for 30% of profits from stock sales following the IPO.
Local media in South Korea also reported that police referred four additional individuals to prosecutors on Thursday, including Hybe executives and officials connected to the private equity fund, with recommendations that they also be indicted.
Hybe officials have said Bang denies any wrongdoing.
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“We have consistently responded to the allegations with objective evidence and facts,” Bang’s legal team said in a statement Thursday. “We expect the allegations to be fully and transparently resolved through the legal process.”
Police earlier sought Bang’s arrest twice in April and May. But prosecutors rejected those requests, saying police failed to provide sufficient grounds for his arrest and failed to comply with prosecutors’ demand for further investigation of Bang.
Observers say prosecutors could again ask for further police investigation, rather than indicting Bang immediately.
News of Bang’s legal troubles flared after BTS returned and launched a much-awaited world tour earlier this year after a nearly four-year musical hiatus due to the band members’ mandatory military service in South Korea.
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