K-pop mogul faces arrest

The investigation alleges that Bang misled investors about Hybe's long-term plans and profited through a private-equity-linked arrangement that was not properly disclosed.

The Seoul Metropolitan Police Agency expanded the probe after uncovering evidence of unfair stock trading and securities fraud.

This legal crisis comes at a sensitive time for Hybe as its flagship group, BTS, prepares to resume global touring.

Prosecutors are also examining whether the scheme involved the illicit transfer of funds to offshore accounts.