SEOUL, South Korea (AP) — South Korean police are pushing for an indictment of music tycoon Bang Si-Hyuk, the chairperson of the agency behind K-pop supergroup BTS, over alleged investor fraud.
The Seoul Metropolitan Police Agency referred Bang to the Seoul Southern District Prosecutors’ Office on Thursday, asking him to be indicted on a charge of violating the capital markets act, according to the police agency and the prosecutor’s office.
Police have been investigating Bang, the billionaire founder and chairperson of Hybe, over allegations that he misled investors in 2019 by indicating that Hybe had no immediate plans to go public, prompting them to sell their shares to a private equity fund shortly before the company proceeded with an initial public offering.
Police earlier said that the fund may have paid Bang somewhere around 200 billion won ($147 million) in a side deal that promised him 30% of post-IPO stock sale profits.
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South Korean media reported that police referred four other people, including Hybe executives and private equity fund officials, to prosecutors on Thursday as well, asking for their indictment.
Hybe officials have said Bang denies any wrongdoing.
“We have consistently responded to the allegations with objective evidence and facts,” Bang’s legal team said in a statement Thursday. “We expect the allegations to be fully and transparently resolved through the legal process.”
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Police earlier sought Bang’s arrest twice in April and May. But prosecutors rejected those requests, saying police failed to provide sufficient grounds for his arrest and failed to comply with prosecutors’ demand for further investigation of Bang.
Observers say prosecutors could again ask for further police investigation, rather than indicting Bang immediately.
News of Bang’s legal troubles flared after BTS returned and launched a much-awaited world tour earlier this year after a nearly four-year musical hiatus due to the band members’ mandatory military service in South Korea.
