South Korean police seek indictment of K-pop mogul behind BTS over alleged investor fraud

South Korean police are seeking the indictment of Bang Si-hyuk, the billionaire founder and chairperson of HYBE, the agency behind K-pop supergroup BTS, over alleged investor fraud.

The Seoul Metropolitan Police Agency referred Bang to the Seoul Southern District Prosecutors’ Office on Thursday, asking that he be indicted on a charge of violating the Capital Markets Act, according to police and prosecutors.

Police have been investigating Bang over allegations that he misled investors in 2019 by indicating that HYBE had no immediate plans to go public. Investors allegedly sold their shares to a private equity fund shortly before the company proceeded with its initial public offering.

Police previously said the fund may have paid Bang around 200 billion won ($147 million) through a side deal that allegedly promised him 30% of profits from post-IPO stock sales.

South Korean media reported that police also referred four other people, including HYBE executives and private equity fund officials, to prosecutors on Thursday and requested their indictment.

Bang has denied wrongdoing. His legal team said in a statement that he has consistently responded to the allegations with evidence and facts and expects the matter to be resolved through the legal process.

Police previously sought Bang’s arrest twice, in April and May, but prosecutors rejected the requests, saying investigators had not provided sufficient grounds for an arrest and had not fully complied with requests for additional investigation.

Prosecutors could still ask police to conduct further investigative work rather than immediately indicting Bang.

The legal controversy comes as BTS has returned to the music scene and launched a highly anticipated world tour following a nearly four-year hiatus related to the mandatory military service of its members in South Korea.