South Korean police said Tuesday they have sought an arrest warrant for Bang Si-hyuk, chairman of the agency behind K-pop sensation BTS, over an investor fraud scheme.
Police said Bang is suspected of violating capital markets laws by misleading early investors of HYBE Agency in 2019.
He reportedly told them the company had no plans to go public, prompting them to sell shares to a private equity fund linked to his associates.
Investigators say Bang later received about 30% of the fund’s post-IPO profits under a prior agreement, netting about 190 billion won ($129 million, €109.5 million).
Bang has been under investigation since November. The music mogul has denied any wrongdoing.
HYBE did not release any comment on the arrest warrant request.
Police case comes amid BTS global tour
Bang founded HYBE in 2005 as Big Hit Entertainment. Now, the agency is behind BTS and other major K-pop acts including Seventeen, Le Seraphim and Catseye.
The incident comes as BTS resumes touring after a nearly four-year hiatus as its members completed mandatory military service.
Earlier this month, the K-pop supergroup launched its global tour, which will take the band to 34 cities around the world, setting a new record for the most tour dates by a K-pop artist.
According to BTS’ management agency, tickets for the concerts in South Korea, North America and Europe sold out within hours of opening for sale.
Edited by: Natalie Muller