Bang Si-Hyuk, the chairman and founder of HYBE, the agency behind popular K-pop groups like BTS, is under scrutiny as the Seoul police seek a warrant for his arrest related to allegations of fraud. The accusations stem from claims that he engaged in fraudulent and unfair trading practices under the Capital Markets Act. Investigations by South Korea's financial regulator began in December 2024, focusing on profit-sharing deals made with private equity funds prior to HYBE's public offering. Bang is alleged to have misled investors by denying any plans for an IPO, which led them to sell their shares to a private equity fund associated with him. When HYBE eventually filed for an IPO, Bang reportedly benefited from a 30% return-sharing deal with the fund, a transaction not disclosed during the IPO process. If the gains from these actions exceed 5 billion KRW (approximately $3.64 million), he could face severe penalties, including life imprisonment. Bang has denied any wrongdoing, and HYBE has stated that they will continue to cooperate with the legal investigation.