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23 Apr 2026
Police seek arrest warrant for HYBE founder Bang Si Hyuk over alleged fraudulent share trading tied to HYBE IPO, he denies charges, court to decide on custody soon.
When one of the biggest names behind global K-pop success lands in legal trouble, it naturally grabs attention far beyond the music world. That’s exactly what’s happening right now, as developments around Bang Si-Hyuk begin to raise serious questions about what could unfold next.
The chairman of HYBE — the agency behind BTS — is currently under investigation in South Korea over allegations linked to fraudulent trading and violations of financial laws. The case has been ongoing for over a year and is now entering a crucial phase.
According to Korean media reports on April 21, the Seoul Metropolitan Police Agency’s financial crimes unit has formally applied for an arrest warrant against Bang. The request has been submitted to the Seoul Southern District Prosecutors’ Office, citing concerns related to “fraudulent unfair trading." Authorities reportedly pushed for the warrant due to the seriousness of the case and fears that evidence could be tampered with or destroyed.
The investigation itself has been underway for approximately one year and four months. During this period, enforcement agencies have taken multiple steps, including a two-day raid at Bang’s residence in December 2025. The operation was carried out by the Financial Supervisory Service’s Special Judicial Police for Capital Markets as part of the broader probe.
At the centre of the case are allegations tied to events in 2019, before HYBE’s public listing. Bang is accused of misleading early investors by suggesting that the company had no immediate plans for an initial public offering (IPO). Authorities claim that, despite these assurances, shares were later transferred to a special-purpose company (SPC) associated with a private equity fund that had links to HYBE insiders.
Earlier this month, shares worth around 157 billion KRW (approximately $107 million USD) connected to Bang were seized on the instructions of the Seoul Southern District Court. Investigators believe these shares were part of a larger financial arrangement involving internal connections within the company.
According to the allegations, once HYBE went public, the private equity fund sold those shares at a significant profit. Police suspect there was a prior agreement that entitled Bang to roughly 30 per cent of these gains. The total profits from this arrangement are estimated to be between 190 and 200 billion KRW (around $129 million USD), which authorities are examining as potentially незаконно obtained through deceptive practices.
Under South Korean law, if illegal gains exceed 5 billion KRW, the penalties can be severe. If found guilty, Bang could face a minimum prison sentence of five years, or even life imprisonment.
Bang, however, has denied all accusations. He has maintained that his actions were in line with regulations and has consistently stated that there were no legal violations during HYBE’s IPO process.
The final call now rests with the court, which will decide whether to approve the arrest warrant. If granted, Bang could be taken into custody while the investigation continues. Either way, the case is expected to move into a more decisive legal stage, potentially leading to formal trial proceedings.
Given HYBE’s massive global presence and its role in shaping modern K-pop, the case is being closely watched not just in South Korea but across the international entertainment industry. Beyond the immediate legal outcome, it could also influence how corporate practices and investor transparency are viewed within the sector going forward.
