Arrest Warrant Sought for HYBE Founder Bang

South Korean police have asked prosecutors to seek an arrest warrant for Bang Si-hyuk, the founder of Hybe, on allegations of fraudulent trading. The request was made on Tuesday, according to the details provided in the case. Bang, 53, is accused of misleading investors in 2019 by denying plans for a public listing while, police allege, preparations were underway for Hybe to list on the Kospi in October 2020.

Police allege Bang obtained about 200 billion won ($136 million) through the conduct described in the warrant request. Bang has denied the accusation. His legal representatives said they regret the police move and will cooperate with legal procedures to clarify his position.

The investigation has been active for months and has included raids at Hybe’s headquarters and asset freezes, officials said. Bang has also been barred from international travel since August. The case is now at a stage where prosecutors will review the police request and decide whether to pursue an arrest warrant through the courts.

Under South Korean law, officials noted that convictions involving illicit gains above 5 billion won can carry severe penalties, including the possibility of life imprisonment. The police allegations focus on communications with investors in 2019 and the period leading up to Hybe’s eventual market debut in October 2020.

The legal development lands as Hybe’s business profile remains closely tied to global demand for K-pop, particularly BTS. BTS recently began a world tour after a nearly four-year hiatus, and industry analysts have projected more than $1 billion in revenue for Hybe from the sold-out tour, according to the figures cited alongside the case update.

Markets reacted quickly. Hybe shares fell 2.3% on Tuesday after the news, even as the benchmark Kospi index rose 2.7%. Earlier, Hybe’s shares had reached a four-year high in January following the tour announcement, which added more than 1 trillion won to the company’s market capitalization.

For investors, the situation combines a high-profile criminal probe with a company whose valuation is sensitive to headline risk and entertainment-cycle momentum. Key uncertainties include how prosecutors respond to the police request, what a court may decide on any warrant application, and how ongoing legal proceedings could intersect with Hybe’s operations and market performance.