The South Korean police shared with prosecutors the findings of a long-running investigation into Bang Si-hyuk, the founder of BTS’ agency Hybe, over allegations he misled investors ahead of the company’s 2020 listing.
The Seoul Metropolitan Police Agency sent the case to the Seoul Southern District Prosecutors’ Office on suspicion of fraudulent trading under the Capital Markets Act, Yonhap News reported on Sept 3.
The police also secured a court order freezing 263.1 billion won (S$245.9 million) in alleged illicit gains linked to the case, the report said.
The police sought arrest warrants for Bang twice earlier in 2026, but prosecutors rejected both requests and ordered further investigation.
Bang, who has denied wrongdoing, has been subject to an overseas travel ban since August 2025.
Bang’s legal team said in a statement that they have “consistently responded to the allegations with objective evidence and facts”.
“We expect the allegations to be fully and transparently resolved through the legal process.”
Representatives for Hybe could not immediately be reached for comment. Calls to the Seoul Metropolitan Police Agency were not answered.
The police allege Bang encouraged existing shareholders to sell their shares in the then unlisted company to a private equity fund after telling them the firm had no plans to go public.
The authorities believe Bang reaped roughly 190 billion won in illicit gains from the transactions under scrutiny, including through an agreement that entitled him to 30 per cent of the fund’s profits when it later sold Hybe shares.
Bang, who is estimated to be worth US$1.4 billion (S$1.78 billion) according to the Bloomberg Billionaires Index, has been under investigation for more than a year after the Financial Services Commission referred the case to the police in July 2025.
The regulator alleged Bang entered into a profit-sharing agreement with the private equity fund and concealed it during the initial public offering process.
South Korea’s capital markets law prohibits obtaining financial gains through false statements or deceptive schemes. Violations involving gains of at least 5 billion won carry a minimum of five years in prison. BLOOMBERG
