Korean police seek to arrest man behind BTS
What's the story
Bang Si-Hyuk, the chairman of HYBE Corporation and the mastermind behind K-pop sensation BTS, is facing potential arrest in South Korea. The Seoul Metropolitan Police Agency has requested prosecutors to seek a court warrant for his arrest as part of an ongoing investigation into alleged investor fraud. The allegations suggest that Bang illegally acquired over $100 million through this scheme.
Legal response
Bang's legal team's statement
In a statement to the Associated Press, Bang's legal team expressed regret over the police's request for his arrest. They stated it was "despite our full and consistent cooperation with the investigation over an extended period." The statement further assured that they would continue to cooperate with all legal procedures and strive to clarify their position.
Fraud allegations
Allegations against Bang
The allegations against Bang date back to 2019 when he reportedly misled investors by claiming that HYBE had no plans to go public. This led the investors to sell their shares to a private equity fund before the company's initial public offering (IPO). The police suspect that this fund may have paid Bang around 200 billion won ($136 million) in a side deal promising him 30% of post-IPO stock sale profits.
Industry impact
Impact on HYBE and BTS
Bang, who founded HYBE as Big Hit Entertainment in 2005, is a prominent figure in the K-pop industry. He oversees popular acts like Seventeen, Le Sserafim, Katseye, and BTS. However, his legal troubles are proving to be a significant public relations setback for HYBE. This comes at a time when BTS is on a global tour after nearly four years of hiatus due to mandatory military service.