SEOUL, July 17 -- South Korean financial regulators have referred Hybe chairman and founder Bang Si-hyuk to prosecutors over allegations of fraudulent trading during the K-pop agency's initial public offering (IPO).

The Financial Services Commission's Securities and Futures Commission said it filed a criminal complaint against the mogul known as"Hitman" Bang who also produced popular boy group BTS, and several former Hybe executives for allegedly violating the Capital Markets Act, The Korea Herald reported today.

"The suspects circumvented the lock-up period meant to prevent major shareholders from offloading shares immediately after listing, and dumped their shares on the market for profit.

"The nature of this violation is particularl...