South Korean police are pursuing the arrest of Bang Si-hyuk, the billionaire K-pop mogul known for creating the globally successful group BTS. He faces allegations of fraudulent trading related to his company, Hybe, which went public in 2020 with a valuation of $7.3 billion.
Allegations of Fraud
Bang is accused of misleading investors in 2019 by suggesting that a public listing for Hybe was unlikely while secretly preparing for it. Police allege that this deception resulted in Bang pocketing approximately 200 billion won (about $136 million) when Hybe debuted on the South Korean Kospi stock exchange in October 2020.
As part of the ongoing investigation, police have requested prosecutors to seek a court warrant for Bang’s arrest. This case has been lengthy, involving raids at Hybe’s headquarters and the freezing of some of Bang’s assets. He has been banned from traveling abroad since August while the investigation continues.
Bang’s Response and Company Impact
Bang has consistently denied the allegations, asserting that his actions were lawful. His legal team expressed regret over the police’s request for an arrest warrant and stated their intention to cooperate with legal procedures.
The request for an arrest warrant comes shortly after BTS announced a comeback world tour, which is expected to generate over $1 billion in revenue for Hybe. The group’s tour will span 34 cities worldwide, and the announcement led to a significant increase in Hybe’s stock value.
Background on Bang Si-hyuk
Bang Si-hyuk, 53, co-founded JYP Entertainment in 1997 before establishing Big Hit Entertainment, now known as Hybe, in 2005. He played a crucial role in the development of BTS, which has become one of the most successful pop groups in history. Under his leadership, BTS has achieved numerous milestones, including being the first Korean act to top Billboard’s Hot 100.
In recent years, Bang’s net worth has increased significantly, with estimates placing it at over $2 billion. He holds more than 13 million shares in Hybe, valued at nearly 5 trillion won.
As the investigation unfolds, the South Korean government has intensified its efforts to combat stock manipulation, with new regulations and harsher penalties for those involved in illicit trading practices. This crackdown follows a history of lenient penalties for stock-related offenses in the country.
Source: Original report