South Korean Police Moves to Arrest HYBE Founder and Mastermind Behind KPop Group BTS Over IPO Fraud

Seoul: South Korean police moved Tuesday to arrest Bang Si-hyuk, the billionaire founder and chairman of HYBE — the entertainment conglomerate behind global K-pop supergroup BTS — over allegations that he illegally gained more than $100 million through a fraudulent scheme tied to the company's stock market debut.

The Seoul Metropolitan Police Agency confirmed that it has asked prosecutors to request a court warrant for arresting Bang, who has been barred from leaving the country since last year.

The Seoul Metropolitan Police Agency's financial crimes investigation unit said it has booked Bang on charges of fraudulent and unfair trading, alleging that he violated South Korea's Capital Markets Act and secured roughly 190 billion won ($129 million) in illicit gains during HYBE's IPO process.

Bang is being investigated over allegations that he misled investors in 2019 by telling them HYBE had no plans to go public, prompting them to sell their shares to a private equity fund, before the company proceeded with an initial public offering. Police believe that the fund may have paid Bang around 200 billion won ($136 million) in a side deal that promised him 30% of post-IPO stock sale profits.

The Korea Times noted that under the Capital Market Act, any person who nets KRW 5 billion or more by making false representations about a financial product faces a prison term of at minimum five years, with a life sentence possible at the upper end.

The probe dates to December 2024, when South Korea's financial authorities began examining whether Bang had entered into undisclosed profit-sharing agreements ahead of HYBE's IPO. Police raided HYBE's Seoul headquarters in July 2025, and Bang voluntarily returned to South Korea the following month to cooperate. In December, the Seoul Southern District Court approved a provisional seizure of his HYBE shares worth 156.8 billion won (approximately $118 million).

Bang has previously denied any wrongdoing, and HYBE did not immediately release a public response to Tuesday's developments.

A court must still approve the warrant before Bang can be taken into custody. The move came just a day after Seoul police commissioner Park Jung-bo indicated during a press briefing that the investigation was "essentially complete" and would be wrapped up soon.

Notably, the National Police Agency confirmed that the US embassy in Seoul recently sent a letter asking authorities to allow Bang to travel to the United States, despite the travel ban imposed during the investigation. According to police, the letter sought a temporary suspension of the ban, citing plans for Bang and other senior executives to attend an event to mark US Independence Day and hold talks related to the ongoing BTS global tour.

The Man Behind the K-pop Empire

Bang, 53, founded Big Hit Entertainment — HYBE's predecessor — in 2005 after splitting from JYP Entertainment, where he had worked alongside founder Park Jin-young as one of the company's first employees, earning the nickname "Hitman Bang" for his chart-topping prowess as a composer and producer.

In 2021, HYBE spent about $1 billion to purchase Scooter Braun's Ithaca Holdings, securing the management rights to artists like Justin Bieber and Ariana Grande. While HYBE's roster includes some of K-pop's biggest acts, such as Seventeen, Le Sserafim and Katseye in addition to BTS, the company has seen turmoil in recent years, including a highly public fallout between Bang and star producer Min Hee-Jin over the popular girl group NewJeans.

According to some local estimates, Bang's HYBE stake alone is worth as much as 4.8 trillion won ($3.6 billion), making him the only self-made billionaire in the Korean entertainment industry.

Shadow Over BTS's Global Comeback

The arrest bid casts a long shadow over what was expected to be a triumphant year for HYBE and BTS alike. BTS recently returned to the global stage following a nearly four-year hiatus due to mandatory military service, marking their comeback with a large-scale free concert in Seoul that drew tens of thousands of fans. The group has since continued performances in Goyang and Tokyo, with a series of US shows set to begin later this month in Tampa, Florida.

With legal scrutiny intensifying, the outcome of the investigation could have far-reaching implications not just for Bang, but for HYBE's global ambitions at a time when its flagship act is back in the spotlight.