South Korean police have moved to secure an arrest warrant for Bang Si-hyuk, the founder and chairman of Hybe, the agency behind the popular boy band BTS.

Authorities from the Seoul Metropolitan Police Agency’s financial crimes investigation unit have booked Bang on charges of fraudulent and unfair trading linked to Hybe’s 2020 initial public offering.

Investigators allege that he violated South Korea’s Capital Markets Act and secured approximately 190 billion won ($129 million) in illicit gains during the process.

At the centre of the case is a private equity arrangement that police claim was designed to mislead early investors.

Authorities allege that Bang encouraged shareholders to sell their stakes to a private equity fund connected to his associates, before receiving around 30% of the fund’s profits under a prior agreement after the company went public. Bang has previously denied any wrongdoing.

The latest development follows comments from Seoul police commissioner Park Jung-bo, who said the investigation was “essentially complete” and nearing conclusion. Bang has reportedly been barred from leaving South Korea since August last year as the probe progressed.

The investigation began in December 2024, when financial regulators started examining alleged undisclosed profit-sharing agreements tied to the IPO.

Police later raided Hybe’s Seoul headquarters in July 2025, and Bang returned to the country the following month to cooperate. In December, a court approved a provisional seizure of his shares worth 156.8 billion won.

Hybe has not issued a public response to the warrant request. Following the news, the company’s shares fell by as much as 2.9% in trading.

Bang founded Big Hit Entertainment in 2005, later rebranded as Hybe, which grew into a global music company following the success of BTS.