South Korean police have reportedly reapplied for an arrest warrant against Bang Si-hyuk over allegations tied to fraudulent stock transactions ahead of HYBE’s initial public offering (IPO).
According to reports on May 7, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency resubmitted the request for a detention warrant on April 30 under charges of fraudulent and unfair trading in violation of the Capital Markets Act.
The renewed request came just six days after prosecutors previously rejected the warrant application and ordered supplementary investigation.
Authorities suspect Bang Si-hyuk misled early investors in 2019 by allegedly telling them there were no plans for the company to go public, encouraging them to sell their shares to a specific private equity fund. Police believe the company later proceeded with the IPO, allowing massive profits to be generated afterward.
Investigators further allege that Bang had a prior undisclosed agreement with the private equity fund to receive 30% of the profits earned after the listing process. Police estimate the alleged unfair gains reached approximately 190 billion KRW (around $140 million USD).
After receiving intelligence related to the case in late 2024, police reportedly carried out search and seizure operations at the Korea Exchange and HYBE offices in June and July of last year. Bang Si-hyuk was also placed under a travel ban and questioned five separate times between September and November.
Despite the ongoing investigation, Bang has maintained that all procedures during HYBE’s IPO complied with relevant laws and regulations.
His legal representatives responded to the renewed warrant request by stating: “It is regrettable that an arrest warrant was requested despite our client’s sincere cooperation throughout the lengthy investigation. We will continue to fully participate in legal procedures and explain our position.”
The case has drawn major public attention due to HYBE’s massive influence within the global K-pop industry as the agency behind acts including BTS, SEVENTEEN, TXT, and LE SSERAFIM.
Sources: Daum | 스타투데이