Bang Si-hyuk is facing continued legal scrutiny after South Korean prosecutors rejected a police request for his arrest warrant for the second time in an ongoing investigation into alleged fraudulent unfair trading tied to HYBE.

According to the Seoul Metropolitan Police Agency, investigators are now reviewing whether they should submit another warrant request or change the direction of the investigation altogether.

During a regular press briefing on May 18, Seoul Metropolitan Police commissioner Park Jeong-bo stated that authorities would carefully analyze the prosecution’s reasons for rejecting the warrant applications and determine whether additional evidence or supplementary investigations are needed.

The police and prosecution appear to have differing views on the strength of the case. When asked whether the second rejection happened because investigators still failed to provide enough supplementary material, Park responded that “the Prosecution Service and the police may have different views,” suggesting disagreement between the two agencies over how much evidence currently supports an arrest warrant.

He also made pointed remarks about the prosecution’s repeated requests for further investigation, saying that prosecutors should “faithfully do their job” while police continue doing theirs.

The case centers on allegations involving HYBE’s corporate activities before the company’s stock market listing in 2020.

Police claim that in 2019, Bang allegedly told existing HYBE investors there were no plans for the company to go public, which reportedly influenced some investors to sell their shares to a private equity fund. Authorities suspect that HYBE later proceeded with its IPO plans anyway, dramatically increasing the value of those shares after listing.

Investigators believe Bang may have received a portion of the profits connected to those transactions, with police estimating alleged illicit gains at approximately 190 billion won (roughly over $130 million USD depending on exchange rates).

The Financial Crime Investigation Unit first applied for an arrest warrant on April 21, but prosecutors rejected the request on April 24 and ordered supplementary investigations instead. Police submitted a second request at the end of April, but prosecutors rejected it again, arguing that the requested additional investigative steps had still not been completed.

The controversy has attracted enormous public attention because Bang Si-hyuk is one of the most influential figures in the modern K-pop industry. As the founder of HYBE — home to global acts including BTS, SEVENTEEN, and TXT — Bang helped transform the company into one of the biggest entertainment corporations in Asia.

The investigation also comes during a turbulent period for HYBE, which has recently faced multiple public controversies involving executive disputes, internal management criticism, and increasing scrutiny over corporate governance.

At this stage, Bang has not been arrested or formally convicted of any wrongdoing. The police investigation remains ongoing, and authorities have not yet announced whether they will file another warrant request or pursue alternative legal action.