HYBE Chairman Bang Si-hyuk Arrest Warrant Rejected Again in Stock Fraud Probe

Seoul Prosecutors Reject Second Arrest Warrant for HYBE Chairman Bang Si-hyuk

The Seoul Southern District Prosecutors' Office has rejected a second arrest warrant request for HYBE Chairman Bang Si-hyuk, citing the police's failure to complete requested supplementary investigations. Bang faces allegations of violating the Capital Markets Act by deceiving investors regarding the company's 2019 listing plans to secure significant unfair profits through a private equity fund.

Key Facts

• Prosecutors returned the re-applied warrant on May 6, 2024, stating the necessary supplementary investigative details were not fulfilled.
• Bang is accused of falsely claiming there were no IPO plans in 2019 to induce investors to sell shares to a private equity fund associated with HYBE executives.
• Police estimate Bang gained 260 billion won ($200M USD) in unfair profits, including 190 billion won ($146M USD) from a private contract sharing 30% of post-listing disposal gains.
• The investigation included raids on the Korea Exchange and HYBE headquarters in mid-2025, followed by a travel ban on Bang in August 2025.
• Bang was summoned for questioning five times between September and November 2025.
• A court has frozen Bang’s HYBE shares valued at approximately 156.8 billion won (~$120.6M USD).
• Violations of the Capital Markets Act involving illegal profits exceeding 5 billion won (~$3.8M USD) can carry a penalty of life imprisonment or a minimum of five years in prison.

Key Terms

• Capital Markets Act: A law regulating financial investment services and unfair trading.
• Private Equity Fund (PEF): An investment fund not publicly traded, typically involving institutional or high-net-worth investors.
• Supplementary Investigation: A process where prosecutors require police to gather additional evidence before proceeding with a warrant or indictment.

Key Quote

"We received and reviewed the arrest warrant re-applied by the police, and as a result, the requested supplementary investigation details were not fulfilled."
— Seoul Southern District Prosecutors' Office

Next

• Police are expected to address the specific investigation points requested by the prosecution.
• Authorities are considering a non-detention indictment following two failed attempts to secure custody.
• The U.S. Embassy has requested police cooperation regarding a potential visit to the United States by Chairman Bang.