Seoul. South Korean police said Tuesday they are seeking to arrest music mogul Bang Si-hyuk, the chairman of the agency behind K-pop supergroup BTS, as they expand an investigation into allegations he illegally gained more than $100 million in an investor fraud scheme.

The Seoul Metropolitan Police Agency said it has asked prosecutors to seek a court warrant for Bang, the billionaire founder and chairman of Hybe.

Bang’s legal team, in a statement to The Associated Press, did not directly address the allegations but expressed regret over the move, citing what it described as “full and consistent cooperation” with investigators.

“We will continue to cooperate with all legal procedures and make every effort to clearly explain our position,” the statement said.

Bang, who has been barred from leaving the country since August, is under investigation over claims he misled investors in 2019 by saying Hybe had no plans to go public, prompting them to sell shares to a private equity fund. The company later proceeded with an initial public offering.

Police believe the fund may have paid Bang about 200 billion won ($136 million) in a side deal that promised him 30% of post-IPO stock sale profits. Hybe officials say Bang denies any wrongdoing.

The case marks a significant reputational challenge for Hybe, as BTS resumes global activities following a nearly four-year hiatus during which its members completed mandatory military service.

The group recently performed for tens of thousands of fans at a free comeback concert in Seoul and has since held shows in Goyang and Tokyo. BTS is set to begin a series of US events with a concert in Tampa, Florida, later this month.

Bang, who founded Hybe as Big Hit Entertainment in 2005, is widely regarded as one of the most influential figures in K-pop. He has leveraged BTS’s global success to transform the company into an international entertainment powerhouse.

In 2021, Hybe spent about $1 billion to acquire Ithaca Holdings, securing management rights to artists including Justin Bieber and Ariana Grande.

Despite its strong roster — including Seventeen, Le Sserafim and Katseye — Hybe has faced internal turbulence in recent years, including a high-profile dispute between Bang and producer Min Hee-jin over the management of girl group NewJeans.

The conflict erupted in 2024 when Hybe moved to remove Min as CEO of Ador, the label managing NewJeans, accusing her of attempting to seize control of the unit. Min denied the allegations and accused Bang of undermining the group.

Members of NewJeans, who have described Min as a mentor, sought to terminate their contracts following her removal. However, a court last year ruled they must remain with the label through 2029.