Prosecution Returns Arrest Warrant for Bang Si-hyuk, Requests Supplementary Investigation

Allegations of Fraudulent Unfair Trading... Warrant Rejected Three Days After Request
Police Conclude Bang Si-hyuk Illegally Gained 260 Billion Won

The prosecution has returned the arrest warrant for Bang Si-hyuk, Chairman of HYBE, to the police. Bang is suspected of providing false information to investors ahead of HYBE's IPO, causing them to sell their shares.

On April 24, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office announced that it had rejected the arrest warrant for Bang, who was suspected of fraudulent unfair trading. A prosecution official explained, "We determined that there was insufficient explanation regarding the necessity for detention at this stage," adding, "We have requested supplementary investigation."

Bang Si-hyuk, Chairman of HYBE, is appearing at the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency in Mapo-gu, Seoul, last September. Photo by Dongju Yoon

Chairman Bang is accused of obtaining unlawful gains of up to 260 billion won by providing false information to existing shareholders and others during the process of acquiring HYBE shares before its 2019 listing. Specifically, he allegedly claimed that the IPO was delayed or that there were no plans for listing, even as preparations were underway.

Previously, on April 21, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency had requested an arrest warrant for Bang. According to the police, Bang deceived existing shareholders and investors, causing them to sell their shares to a private equity fund established by his acquaintance, subsequently listing HYBE and pocketing the proceeds through a private contract with the fund. The amount of unfair profit is estimated at 260 billion won, including 190 billion won, which is equivalent to 30% of the capital gains from the sale.

Under the Capital Markets Act, anyone who gains over 5 billion won in profit from unlisted stocks or other financial investment products through lies or by using unfair schemes can be sentenced to life imprisonment or at least five years in prison.

Meanwhile, earlier this month, the U.S. Embassy in South Korea sent a letter to the acting Commissioner General of the National Police Agency, requesting permission for Bang to visit the United States. This was effectively interpreted as a request to lift his travel ban. The letter reportedly cited the 250th anniversary of U.S. Independence Day celebrations in July and BTS's U.S. tour as the reasons for the request.

This content was produced with the assistance of AI translation services.