South Korean police announced on Tuesday that they have sought an arrest warrant for Bang Si-hyuk, chairman of the agency HYBE behind K-pop sensation BTS, over an investor fraud scheme. According to police, Bang is suspected of violating capital market laws by misleading early investors of the agency in 2019, allegedly telling them the company had no plans to go public, which prompted them to sell shares to a private equity fund linked to his associates.

Investigators claim that Bang later received about 30% of the fund's post-IPO profits under a prior agreement, earning roughly 190 billion won ($129 million, €109.5 million). The case emerged during an investigation that began in November, although the music mogul has denied any wrongdoing.

HYBE did not issue a comment on the request for an arrest warrant. Bang founded HYBE as Big Hit Entertainment in 2005, and the agency now manages BTS and other major K-pop acts including Seventeen, Le Sserafim, and Katseye.

The case comes as BTS resumes touring after a nearly four-year hiatus due to mandatory military service for its members. Earlier this month, the K-pop supergroup launched a global tour that will take the band to 34 cities worldwide, setting a new record for the most tour dates by a K-pop artist.

Tickets for concerts in South Korea, North America, and Europe sold out within hours of going on sale, according to BTS's management agency. This highlights the group's enduring global appeal, but the legal troubles of its chairman could cast a shadow over the agency's future operations and reputation.

Source: www.dw.com