HYBE Chairman Bang Si-hyuk speaks to reporters as he appears for questioning at the Seoul Metropolitan Police Agency, Sept. 15. Korea Times photo by Kang Ye-jin

HYBE Chairman Bang Si-hyuk, creator of K-pop boy group BTS, has been under a legal microscope since late 2024 over alleged violations of the nation's Capital Markets Act in 2019. He stands accused of misleading investors and venture capital firms, telling them that the initial public offering for HYBE would be delayed. This misinformation prompted the investors to sell shares to companies related to HYBE, enabling Bang to rake in around 190 billion won ($129.1 million).

Given President Lee Jae Myung's vow to revive Korea's undervalued capital market, the investigation into Bang's possible stock fraud is one of the high-profile cases. After questioning the chairman five times, police on Tuesday requested a court issue an arrest warrant for Bang.Under the Capital Markets Act, an illicit gain of 5 billion won or more through fabrications can result in a minimum five years in prison to a life sentence.

HYBE maintains that the chairman followed the rules surrounding the IPO and said they would continue to cooperate with further investigations.

Nevertheless, the hope is that the allegations will be dealt with legally — and separately from matters related to BTS. Starting with a grand comeback performance in Seoul on March 21, followed by three shows in Goyang, Gyeonggi Province, before moving on to Tokyo, the BTS members are expected to start the U.S. leg of their tour April 24 with a show in Tampa, Florida.

BTS are currently on a roll with their fifth studio album, "ARIRANG," released March 21 following a four-year hiatus during which the seven members completed their mandatory military service. Bang was the executive producer for the new album.

The stellar comeback of BTS overshadowed other issues at HYBE. Amid fan demand and hype for BTS, the U.S. Embassy in Seoul had reportedly asked the police to temporarily lift the HYBE chairman's travel ban, in effect since last August, so he could assist with the BTS tour and participate in Fourth of July festivities. With this year marking the 250th anniversary of independence, U.S. President Donald Trump has indicated that festivities are likely to be of unprecedented scale. The embassy reportedly also requested two other HYBE executives, CEO Lee Jae-sang and Vice President Kim Hyun-jung, to be allowed to travel as well.

It seems unfeasible for Bang's overseas travel ban to be temporarily lifted now that an arrest warrant has beensought. President Lee, emphasizing his administration's priority in revitalizing the domestic capital market, went so far as to warn in an address last year that "those who manipulate stock prices will face total ruin."

Regarding the travel ban, HYBE said that it did not ask the U.S. Embassy to intervene on its behalf, according to reports, while noting that the restriction has effectively limited the chairman's work. The external request for a temporary reprieve for Bang, who symbolizes the soft power of K-culture for leveling up the K-pop industry, posed a dilemma for investigative authorities. However, Bang's case is a complex one, and the investigation must take priority.

It's well worth reiterating that the manner of the reported U.S. Embassy's request did not follow formal convention. The embassy reportedly communicated with the investigative agency, the police, without going through the Ministry of Foreign Affairs. The embassy has stated that "we do not have anything to add on that matter."

Source: Korea Times News