The Prosecution Service has once again rejected the arrest warrant requested by police for Bang Si-hyuk, chairman of HYBE, who is accused of deceiving investors during the company’s listing process and pocketing illicit gains.
The Joint Investigation Division for Financial and Securities Crimes at the Seoul Southern District Prosecutors’ Office said on the 7th that it had received the arrest warrant resubmitted by the Seoul Metropolitan Police Agency on the 30th of last month. After reviewing it, the office rejected the request on the afternoon of the 6th, saying the supplementary investigation it had asked for had not been carried out.
The Financial Crime Investigation Unit, Seoul Metropolitan Police Agency, applied for an arrest warrant for Bang on the 21st of last month over allegations of fraudulent trading. However, the Prosecution Service returned the warrant to police on the 24th, saying there was insufficient explanation for the reasons why detention was needed at that stage.
Police then said they were “conducting a strict supplementary investigation into the requested areas” after receiving the request for additional investigation. They resubmitted the arrest warrant for Bang on the 30th of last month, but the Prosecution Service rejected it again.
Bang is accused of telling HYBE investors in 2019 that there were no plans for an initial public offering, prompting them to sell their shares to a specific private equity fund (PEF), and then proceeding with the listing afterward.
Police suspect that Bang received 30% of the sale profits after the listing, based on a confidential agreement he had previously made with the PEF, and that he gained about 190 billion won in illicit profits.
After receiving intelligence on Bang at the end of 2024, police raided the Korea Exchange (KRX) and HYBE in June and July last year, and imposed a travel ban on Bang. They then conducted five rounds of questioning between September and November.
Bang has maintained that there is no legal issue, saying he complied with all relevant laws and regulations at the time of the company’s listing.
