The Seoul Metropolitan Police Agency on Tuesday said Bang is suspected of violating capital market laws by misleading early investors ahead of HYBE's listing and steering them to sell shares to a private equity fund linked to his associates.
Police allege that after HYBE went public the fund sold its stake and Bang received about 30 per cent of the profits under a prior shareholder agreement, earning around 190 billion won ($A179.9 million) in illicit gains.
Bang has previously denied any wrongdoing.
HYBE did not have an immediate comment when contacted by Reuters.
Bang is also the founder of HYBE, the music powerhouse behind global K-pop supergroup BTS.
The National Police Agency confirmed the US embassy in Seoul recently sent a letter asking authorities to allow Bang to travel to the United States, despite a travel ban imposed during the investigation.
According to police, the letter sought a temporary suspension of the ban, citing plans for Bang and other senior executives to attend an event to mark US Independence Day and hold talks related to the ongoing BTS global tour.
The US embassy in Seoul said it did not have anything to add on that matter.
Bang has been barred from leaving South Korea since August.
