Founder of agency behind K-pop's BTS faces arrest over alleged fraud

South Korean police have requested a detention warrant for Bang Si-hyuk, the chairman of Kpop agency HYBE, over alleged illegal trading tied to the company’s initial public offering.

SEOUL, South Korea — South Korean police have requested a detention warrant for Bang Si-hyuk, the chairman of K-pop agency Hybe, over alleged illegal trading tied to the company’s initial public offering.

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The Seoul Metropolitan Police Agency said Bang is suspected of violating capital market laws by misleading early investors ahead of Hybe’s listing and steering them to sell shares to a private equity fund linked to his associates.

Police allege that after Hybe went public the fund sold its stake and Bang received about 30% of the profits under a prior shareholder agreement, earning roughly 190 billion won ($129.1 million) in illicit gains.