Prosecutors Deny Warrant for Hybe Founder in Fraud Probe

South Korean prosecutors on Friday declined a police request to seek an arrest warrant for Bang Si-hyuk, the billionaire founder and chairman of Hybe, the entertainment company behind the K-pop supergroup BTS, amid an ongoing probe into allegations of investor fraud.

The decision came from the Seoul Southern District Prosecutors' Office, which determined that the request from the Seoul Metropolitan Police Agency lacked sufficient grounds to justify detaining the 53-year-old executive. Prosecutors instructed investigators to bolster their evidence, noting that Bang, who has been prohibited from leaving the country since August, does not appear to pose a flight risk. The police had approached prosecutors earlier in the week to pursue the warrant as part of their high-profile investigation.

At the center of the case are claims that Bang misled investors in 2019 by suggesting Hybe, then known as Big Hit Entertainment, had no immediate plans for an initial public offering. According to investigators, this prompted shareholders to sell their stakes to a private equity fund at a lower value. Shortly after, the company went public in October 2020, one of South Korea's largest listings....