South Korean police are pushing for an indictment of music tycoon Bang Si-hyuk, the chairman 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 chairman 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 might have paid Bang around 200 billion won (US$147 million) in a side deal that promised him 30 per cent of post-IPO stock sale profits.
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.