HYBE chairman Bang Si-hyuk is once again facing intense scrutiny after South Korean police confirmed they are reviewing prosecutors’ latest request for supplementary investigation in the ongoing fraudulent trading case surrounding the company’s IPO process.

During a regular press briefing on May 11, officials from the Korean National Police Agency stated that investigators will decide whether to reapply for an arrest warrant against Bang after reviewing prosecutors’ additional requests.

The controversy centers around allegations tied to HYBE’s 2019 pre-IPO activities. According to police, Bang allegedly misled investors by claiming there were no immediate plans for HYBE to go public. Investigators believe this may have encouraged some shareholders to sell their stakes to a private equity fund before the company eventually proceeded with its highly successful stock market listing.

Police suspect Bang later earned approximately 190 billion won through a confidential agreement tied to post-listing profits with the private equity fund involved in the transactions.

The case has now become even more notable because prosecutors have rejected the police request for Bang’s arrest warrant twice.

The first warrant application, submitted by the Seoul Metropolitan Police Agency Financial Crime Investigation Unit last month, was rejected after prosecutors reportedly argued that the explanation for why detention was necessary was insufficient.

Police later reapplied for the warrant at the end of April, but prosecutors dismissed it again, saying the concerns raised in their request for supplementary investigation had still not been adequately addressed.

The repeated rejection immediately triggered speculation in Korean media and online communities about possible friction between prosecutors and police, especially as discussions surrounding major judicial reforms and the planned reduction of prosecutorial power continue in South Korea.

However, officials attempted to downplay suggestions of institutional conflict. Sung-joo Park, head of the National Office of Investigation, stated that he did not view the situation as a “standoff” between the two sides and emphasized that police are continuing to cooperate closely with prosecutors throughout the investigation.

Meanwhile, the case has drawn massive attention from both financial analysts and K-pop fans because of HYBE’s enormous global influence within the entertainment industry. As the company behind BTS and several other major artists, HYBE’s business activities are constantly under public scrutiny.

The allegations have also reignited criticism from some online users who argue that large entertainment companies have become increasingly tied to aggressive financial strategies and stock market pressure.

At the same time, supporters of Bang insist that no wrongdoing has been legally proven. Bang has consistently denied any illegal activity and stated that all procedures surrounding HYBE’s public listing complied with relevant laws and regulations at the time.

Investigators reportedly began examining the allegations after receiving intelligence related to Bang at the end of 2024. Police later conducted raids at both HYBE and the Korea Exchange before questioning Bang multiple times between September and November.

For now, authorities have not announced whether a third arrest warrant request will officially move forward. But with prosecutors demanding further investigation and public attention continuing to intensify, the case is quickly becoming one of the biggest corporate controversies currently facing the Korean entertainment industry.