Supplementary Investigation vs. Independent Investigation: Prosecution-Police Tensions Escalate Over "Bang Si-hyuk Warrant"

Published 29 Apr.2026 14:56(KST)

The tension between the prosecution and the police over supplementary investigations has intensified following the rejection of the arrest warrant for Chairman Bang Si-hyuk. This situation has evolved beyond a simple matter of handling a corporate executive's custody, simultaneously testing the police's "independent investigative capabilities" and the prosecution's "need to retain the authority for supplementary investigations."

The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit applied for an arrest warrant for Chairman Bang on April 21 on charges of violating the Capital Markets Act (fraudulent unfair trading). However, the Seoul Southern District Prosecutors’ Office, after reviewing the warrant, rejected it on April 24, stating, “There is insufficient evidence to support the necessity of detention,” and ordered a supplementary investigation.

Bang Si-hyuk, Chairman of HYBE, appeared before the police in September 2025 and responded to reporters' questions. Chairman Bang is accused of deceiving investors before HYBE's listing to sell their shares. Photo by Yonhap News Agency

This case is considered the largest Capital Markets Act violation detected by the police to date. Chairman Bang is accused of deceiving early investors into selling their shares by falsely indicating that there were no plans for an IPO, thereby securing illicit gains. The police have estimated Bang’s unjust profits at approximately 190 billion won, and when including gains by related parties, the total reaches around 270 billion won. The investigation by the police has also been unusually lengthy, lasting one year and four months. During this time, the police summoned Chairman Bang for questioning five times and conducted several months of legal review.

One of the main reasons the prosecution returned the warrant and ordered a supplementary investigation is believed to be the insufficient investigation into Kim Jungdong, the former Chief Investment Officer (CIO) of HYBE, who is a key figure in the case. Kim, the former CIO, left for the United States in June 2025, and has since been the subject of an Interpol Red Notice.

On April 27, the police stated that they would consider reapplying for the arrest warrant after completing the supplementary investigation.

In this process, the police must demonstrate their "investigative capabilities" to handle major economic crimes, while the prosecution must prove its longstanding argument that supplementary investigations serve as a "safeguard against inadequate police investigations."

Recently, as the prosecution has been highlighting its achievements in supplementary investigations, the tension between prosecutors and police has been intensifying nationwide, including in Wonju, Incheon, and Gwangju. In particular, capital market crimes have long been regarded as the exclusive domain of the prosecution and financial authorities.

If it is pointed out that the police's investigation veered off course due to insufficient legal structuring, the prosecution’s directive for supplementary investigation is expected to gain further justification. Conversely, if the seriousness of the crime and the risk of evidence destruction are substantiated and the arrest warrant is issued in the future, it is expected to strengthen the police’s independent investigative authority.