HYBE Chairman Bang Si-hyuk Faces Possible Arrest Warrant

South Korean authorities are considering seeking an arrest warrant for Bang Si-hyuk, founder and chairman of HYBE, the entertainment conglomerate behind BTS. The disclosure came as Seoul Metropolitan Police Agency's year-long investigation into Bang’s alleged pre-IPO stock fraud approaches its final legal review.

At a press briefing on April 6, Seoul Metropolitan Police Agency Commissioner Park Jeong-bo stated that Seoul Police are nearly concluding the investigation regarding the allegations against Bang, which started in July 2024. He also confirmed that police are reviewing the application for a formal arrest warrant.

The case revolves around claims that Bang deceived institutional investors and venture capitalists in 2019 by implying that HYBE's initial public offering (IPO) would be postponed. Bang’s claim misled those early investors to sell their shares to a Special Purpose Business (SPC) supported by a HYBE executives-led equity fund.

Bang's tip was deemed false by the Financial Services Commission of South Korea, which discovered that HYBE had already hired an auditor to prepare for its IPO. Following the IPO, the special purpose vehicle sold the shares, with Bang purportedly obtaining 30% of the profits through a secret deal. Authorities allege Bang pocketed approximately ₩190 billion (~$125.9 billion USD) in illicit gains.

Regulatory Scrutiny on HYBE Chairman Tests K-pop Industry Governance

The HYBE case follows a series of high-profile disputes within the company, including conflicts involving subsidiary label management and tax evasion that have raised questions about internal controls. It renews scrutiny on the K-pop industry at a time when the market is rapidly growing.

The SMPA's Financial Crimes Investigation Unit has been conducting its legal review for months. According to Commissioner Park, the investigation is also going through a specialized legal team. While arrest warrants are typically requested within a month after a suspect's summons, the extended review reflects heightened caution due to it being a high-profile case.

Bang has been questioned as a suspect five times, and he is prohibited from traveling. In November 2025, the Seoul Southern District Court granted a plea to freeze over ₩157B (~$107B) worth of Bang's HYBE shares, guaranteeing that assets would be accessible for future prosecution processes.

The arrest warrant request for HYBE’s chairman marks a critical moment for both the company and South Korea’s entertainment industry. HYBE’s flagship boy band BTS is scheduled for a world tour. Now, a prosecution of the chairman behind K-pop's most commercially successful enterprise would represent one of South Korea's most prominent entertainment-sector financial crime cases.