South Korean police said on Tuesday they have sought an arrest warrant for Bang Si-hyuk, chairman of the agency behind K-pop sensation BTS, over an investor fraud scheme.

Bang is suspected of violating capital market laws by misleading early investors of the HYBE agency in 2019, police said.

He allegedly told them the company had no plans to go public, prompting them to sell shares to a private equity fund linked to his associates.

Investigators say Bang later received about 30% of the fund's post-IPO profits under a prior agreement, earning roughly 190 billion won ($129 million, €109.5 million).

Bang has been under investigation since November. The music mogul has denied wrongdoing.

HYBE did not issue a comment on the request for an arrest warrant.

Police case comes amid BTS global tour

Bang founded HYBE as Big Hit Entertainment in 2005. Now, the agency is behind BTS and other major K-pop acts including Seventeen, Le Sserafim and Katseye.

The case comes as BTS resumes touring after a nearly four-year hiatus as its members completed mandatory military service.

Earlier this month, the K-pop supergroup launched its global tour, which will take the band to 34 cities across the world, setting a new record for the most tour dates by a K-pop artist.

Tickets for the concerts in South Korea, North America and Europe sold out within hours of opening for sale, according to BTS' management agency.

Edited by: Natalie Muller