South Korean police have reportedly reapplied for an arrest warrant against Bang Si-hyuk over charges related to fraudulent stock transactions ahead of HYBE’s initial public offering (IPO).
The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency reportedly resubmitted the request for a detention warrant on April 30 on charges of fraudulent and unfair trading in violation of the Capital Markets Law, according to reports on May 7.
The renewed request came just six days after prosecutors previously rejected the warrant request and ordered additional investigations.
Authorities suspect Bang Si-hyuk misled early investors in 2019 by telling them there were no plans to list the company, encouraging them to sell their shares to a specific private equity fund. Police believe the company subsequently proceeded with an IPO, subsequently allowing it to generate huge profits.
Investigators also allege that Bang had a previous undisclosed agreement with the private equity fund to receive 30% of the profits earned after the listing process. Police estimate that the alleged unfair gains reached around KRW 190 billion (around US$140 million).
After receiving information 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 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 maintained that all procedures during HYBE’s IPO complied with relevant laws and regulations.
His legal representatives responded to the request for renewal of the mandate 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 participate fully in the legal proceedings and explain our position.”
The case attracted public attention due to HYBE’s massive influence within the global K-pop industry as the agency behind artists including BTS, SEVENTEEN, TXT and LE SSERAFIM.
Sources: Daum | Star today
