Credit: Yonhap/Newcom/Alamy
In a major development for the K-pop industry, South Korean prosecutors have rejected a police request for an arrest warrant against HYBE Chairman Bang Si-hyuk. The Seoul Southern District Prosecutors’ Office announced on Friday that there is currently “insufficient evidence” to justify detaining the music mogul, who is being investigated for alleged unfair trading tied to the company’s 2020 IPO. While the arrest bid was denied, prosecutors have requested a “supplementary investigation” into the case.
The investigation centers on claims that Bang misled investors in 2019 by stating that HYBE (then Big Hit Entertainment) had no plans for an initial public offering, while the company was reportedly already in pre-IPO stages. These assurances allegedly led investors to sell their holdings to a private equity fund prematurely. Prosecutors suspect Bang may have generated approximately 260 billion won (approx. $180 million) through this scheme. Bang has consistently denied the allegations, maintaining that the IPO was conducted in full compliance with all laws and regulations.
Despite the rejected arrest warrant, Bang remains under a travel ban that has been in place since August 2025. This restriction has become a point of diplomatic interest; reports recently surfaced that the US Embassy in Seoul sent a letter to police requesting that Bang be permitted to travel to America. The embassy cited the 250th anniversary of US Independence on July 4th and the US leg of BTS’s “ARIRANG” World Tour, which just kicked off in Tampa. HYBE has denied any involvement in the letter, stating they did not ask the embassy to intervene on Bang’s behalf.
While police previously stated that their investigation was “essentially complete,” the prosecution’s call for further evidence indicates that the legal battle is far from over. The news comes at a sensitive time for the company as BTS returns to large-scale international touring following the completion of their mandatory military service. For now, Bang continues to cooperate with authorities, expressing regret for how the situation might be impacting HYBE’s artists and employees as he remains grounded in Seoul during one of the group’s most significant global tours.
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