In brief
Authorities in South Korea are seeking an arrest warrant for Bang Si-hyuk, the billionaire founder of K-Pop giant Hybe, over allegations of fraudulent trading prior to the company's public offering. The case accuses him of misleading investors about Hybe's IPO while reaping substantial profits from the situation. This comes as Bang's company celebrates BTS’s world tour, which is expected to generate significant revenue for Hybe. The arrest request reflects a broader crackdown on stock manipulation practices within South Korea.
K-pop mogul Bang Si-hyuk, the man who created supergroup BTS, could be arrested on charges of fraudulent trading before his $7.3bn company went public.
South Korean police have asked prosecutors to request a court warrant over accusations that he misled investors in 2019, by claiming a public listing for his conglomerate Hybe was not likely, while secretly preparing for it.
Hybe debuted on South Korea's Kospi bourse in October 2020, and police allege Bang pocketed approximately 200bn won ($136m; £101m) as a result. He denies the allegations.
The case against Bang is long-running and has involved raids at Hybe's headquarters, freezing some of his assets, and calls for him to step down as company chairman.
The 53-year-old has maintained that his actions were above board and has been banned from traveling abroad since August as the investigation continues.
The request for a warrant comes just weeks after BTS, Hybe's flagship act, kicked off a comeback world tour following a hiatus of nearly four years. Analysts estimate the tour could generate more than $1bn for Hybe, which would likely benefit from the anticipated surge in shares after BTS announced their world tour earlier this year.
Bang, who has been instrumental in BTS's global success, is currently under intense scrutiny as South Korea's financial regulators step up their crackdown on stock manipulation, promising harsher penalties for offenders.
