Seoul: Bang Si-hyuk, the chairman of K-pop giant Hybe, is set to be referred to the prosecution this week amidst allegations of duping investors into selling their shares in the company, as confirmed by police on Monday.

According to Yonhap News Agency, Hong Seok-ki, the head of the National Office of Investigation, announced plans to forward the case for possible indictment within the week during a press briefing. The allegations against Bang center around a violation of the Capital Markets Act. He is accused of misleading investors to sell their stakes in Hybe in 2019, just before the company went public, allegedly resulting in nearly 200 billion won (approximately US$145 million) in unauthorized profits.

The investigation into these allegations commenced in December 2024, with a comprehensive probe beginning in July of the previous year, which included a raid on Hybe's headquarters. The investigation faced delays after the prosecution sought additional inquiries and turned down two arrest warrant requests made by the police.

Insiders familiar with the matter indicated that police are expected to refer Bang's case to the prosecution without pursuing his detention.