Police seek to detain HYBE founder Bang Si-hyuk over alleged $129 million illicit IPO profits, as US embassy requests travel ban suspension
SEOUL: South Korean police have requested a detention warrant for Bang Si-hyuk, the founder and chairman of K-pop powerhouse HYBE.
The Seoul Metropolitan Police Agency alleges Bang violated capital market laws during the agency’s initial public offering.
Authorities suspect he misled early investors ahead of HYBE’s listing and directed them to sell shares to a private equity fund linked to his associates.
Police claim Bang later received roughly 30% of the profits when that fund sold its stake after the IPO.
This allegedly earned him illicit gains of about 190 billion won (RM690 million).
Bang has previously denied any wrongdoing related to the allegations.
A statement from HYBE citing Bang’s legal counsel expressed regret over 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,” it said.
The statement added the company would continue to cooperate with all legal procedures.
HYBE is the music agency behind the global K-pop supergroup BTS.
Its shares reversed earlier gains to close down 2.4% following the police announcement.
The US embassy in Seoul recently requested a temporary suspension of Bang’s travel ban.
Police confirmed the embassy sent a letter asking authorities to allow Bang to travel to the United States.
The letter cited plans for him to attend a US Independence Day event and hold talks related to the BTS global tour.
The US embassy said it did not have anything to add on the matter.
Bang has been barred from leaving South Korea since August last year.
The warrant request will now be reviewed by the Seoul Southern District Prosecutors’ Office.
