South Korean police on Tuesday said they are moving to arrest music executive Bang Si-Hyuk, the chairman of the company behind K-pop supergroup BTS, as part of an expanding investigation into alleged investor fraud. Authorities claim the scheme may have generated more than $100 million in illegal gains.

The Seoul Metropolitan Police Agency confirmed that it has requested prosecutors to seek a court warrant for Bang’s arrest. He is the billionaire founder and chairman of Hybe.

Legal response from Bang’s team

In a statement to The Associated Press, Bang’s legal representatives did not directly address the allegations. However, they expressed concern over the move to seek his arrest, stating that it comes despite their continued cooperation with investigators over an extended period.

“We will continue to cooperate with all legal procedures and make every effort to clearly explain our position,” the statement said.

Allegations linked to pre-IPO dealings

Bang has been under investigation over claims that he misled investors in 2019 by indicating that Hybe had no plans to go public. This reportedly led investors to sell their shares to a private equity fund. The company later proceeded with an initial public offering.

Police suspect that the fund may have entered into a side agreement with Bang, under which he received around 200 billion won, or $136 million. The alleged deal is said to have promised him 30 per cent of profits from stock sales after the IPO.

Bang has been barred from leaving South Korea since August as the investigation continues. Hybe officials have said that he denies any wrongdoing.

Timing poses challenge for Hybe

The developments present a significant public relations challenge for Hybe, particularly at a time when BTS has resumed activities after a long break. The group recently returned from a nearly four-year hiatus during which its seven members completed mandatory military service required for most able-bodied South Korean men.

BTS performed before tens of thousands of fans at a free comeback concert in Seoul last month. The group has also held several shows in Goyang and Tokyo, and is set to begin a series of events in the United States with a concert in Tampa, Florida, later this month.

Bang’s influence in global music

Bang, who founded Hybe as Big Hit Entertainment in 2005, is widely regarded as one of the most influential figures in the K-pop industry. He has sought to build on BTS’s global success to transform the company into a major international pop music force.

In 2021, Hybe spent around $1 billion to acquire Scooter Braun’s Ithaca Holdings, gaining management rights to artists such as Justin Bieber and Ariana Grande.

Internal tensions within Hybe

Despite representing some of the biggest names in K-pop, including Seventeen, Le Sserafim and Katseye alongside BTS, Hybe has faced internal challenges in recent years.

One major controversy involved a public dispute between Bang and prominent producer Min Hee-Jin over the management of the girl group NewJeans. The conflict began in 2024 when Hybe attempted to remove Min from her position as chief executive of Ador, the subsidiary overseeing NewJeans, accusing her of attempting to take control of the company.

Min responded by accusing Bang of hostile actions and of favouring other groups over NewJeans. The dispute escalated into legal proceedings. Members of NewJeans, who have described Min as a mentor, sought to leave the label following her removal. However, a court ruled last year that they must honour their contracts until 2029.

Agency inputs