South Korean Police Seek Arrest Warrant for HYBE Chairman Bang Si-hyuk

M Firoz Al Mamun (Special Correspondent) Posted On Apr 22, 2026 07:17 AM

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South Korean Police Seek Arrest Warrant for HYBE Chairman Bang Si-hyuk

SEOUL — South Korean authorities have formally requested an arrest warrant for Bang Si-hyuk, the billionaire founder and chairman of HYBE, the entertainment powerhouse behind global sensation BTS.

The move follows an intensive investigation into allegations of fraudulent stock trading and market manipulation linked to the company’s 2020 public listing.

The Allegations: Deception and Side Deals

The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit alleges that in 2019, Bang misled early investors and venture capital firms by claiming that a stock market debut for HYBE (then known as Big Hit Entertainment) was not imminent.

According to investigators, this misinformation induced shareholders to sell their stakes to a specific private equity fund allegedly connected to Bang’s associates. The core of the police case includes:

Secret Agreements: Bang is suspected of signing a contract to receive 30% of the profits from the private equity fund’s eventual stake sale.
Illicit Gains: Authorities estimate that Bang and other top executives pocketed approximately 200 billion won ($136 million) following the IPO.
Market Deception: By inducing sales before the company's valuation skyrocketed at listing, Bang allegedly secured massive personal gains at the expense of early investors.

HYBE’s Defense

Bang and his legal team have vehemently denied any wrongdoing. In a statement released Tuesday, his lawyers expressed "regret" over the warrant request, maintaining that all financial disclosures during the IPO were handled according to the advice of professional underwriters.

"We have cooperated fully with the investigation for over a year and will continue to do so to clarify that all actions were in compliance with relevant laws," the statement read.

Impact on the K-pop Industry

The legal crisis comes at a high-stakes moment for the conglomerate. BTS recently launched their "Arirang" World Tour, their first major global circuit in nearly four years following their mandatory military service. The sold-out tour, covering 34 cities, is expected to generate upwards of $1 billion in revenue.

The news of the warrant sent shockwaves through the market:

HYBE shares fell 2.3% on Tuesday.
The "Big Four" rivals (JYP, SM, and YG) also saw their stock prices dip as investor confidence in the K-pop sector wavered.

South Korea’s Regulatory Crackdown

The pursuit of Bang Si-hyuk reflects a broader "one strike and you're out" policy spearheaded by President Lee Jae-myung’s administration to clean up the domestic capital market. Under South Korea’s Capital Markets Act, individuals found guilty of illicit gains exceeding 5 billion won face severe penalties, ranging from five years in prison to a life sentence.

Bang, 53, has been under a travel ban since August 2025. While the U.S. Embassy reportedly requested a temporary lifting of the ban to allow Bang to oversee the North American leg of the BTS tour, South Korean authorities have denied the request, prioritizing the ongoing criminal probe.