South Korean prosecutors have declined a police request for an arrest warrant for Bang Si-Hyuk, the chairman of the agency behind the popular K-pop group BTS. The prosecutors questioned the necessity of detaining Bang as he faces a significant investigation into alleged investor fraud. The Seoul Metropolitan Police Agency had sought a court warrant for Bang’s arrest, but the Seoul Southern District Prosecutors’ Office found the grounds insufficient and advised the police to strengthen their case.
Bang, the billionaire founder of Hybe, has been restricted from leaving the country since August but is not considered likely to flee. The 53-year-old is under investigation for allegedly misleading investors in 2019 by suggesting that Hybe had no immediate plans to go public, leading them to sell their shares to a private equity fund before the company went public. Police assert that the fund may have paid Bang approximately 200 billion won ($185.1 million) in a side deal promising him 30% of post-IPO stock sale profits.
Bang, denying any wrongdoing according to Hybe officials, has been cooperating with the investigation for months. The legal team representing Bang criticized the police for pursuing his arrest. The situation poses a PR challenge for Hybe, coinciding with BTS’s global tour launch following a long hiatus due to the members’ mandatory military service. BTS recently performed for numerous international fans at a free concert in Seoul and has held shows in Goyang city and Tokyo. The group is set to begin a series of events in the U.S. with a concert in Tampa, Florida, this weekend.