Bang Si-hyuk, the founder and chairman of HYBE, the company behind BTS, is wanted by South Korean police for an investor fraud scheme connected to the company’s IPO. Authorities say he is accused of tricking early investors in 2019 and making more than $100 million in illegal profits.
Bang told investors that HYBE had no plans to go public, which made them sell their shares before the company’s IPO, according to the police. Investigators think that the move may have helped Bang’s private equity deal move profits, with reported illegal gains of about 200 billion won.
This case is a big blow to HYBE, one of the biggest companies in K-pop. It comes at a time when BTS is making a comeback around the world after all of its members finished their mandatory military service. The investigation has also made people pay more attention to how companies are run and how stocks are traded in South Korea’s entertainment industry.
