Bang Si‑Hyuk faces arrest over $136M fraud scheme
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- Seoul metropolitan police have asked prosecutors to request a court warrant for the arrest of Bang Si‑Hyuk.
- Bang Si‑Hyuk is alleged to have misled investors in 2019 by claiming HYBE had no plans to go public, prompting them to sell shares to a private equity fund before the IPO.
- Police allege the private equity fund paid Bang about 200 billion won ($136 million) in a side deal promising him 30% of post‑IPO stock sale profits.
- Bang’s legal team says they have fully cooperated with the investigation and will continue to explain his position.
- HYBE faces a major public‑relations setback as its flagship act BTS embarks on a global tour after a four‑year hiatus.
- BTS performed a free comeback concert in Seoul and will hold US shows in Tampa and UK events in July.
Why it matters: The investigation threatens Bang Si‑Hyuk’s freedom and HYBE’s brand for the company, a major public‑relations setback that coincides with BTS’s high‑profile tour, while the $136 million side‑deal allegation highlights the financial stakes for shareholders and the private equity fund involved in the Korean market.
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