Prosecution Rejects Arrest Warrant for HYBE Chairman Bang Si-hyuk Over Alleged Fraudulent Trading

The Seoul Southern District Prosecutors' Office has rejected an arrest warrant for HYBE Chairman Bang Si-hyuk, citing insufficient justification for detention. This follows a 16-month investigation into allegations that Bang orchestrated a scheme to obtain illicit profits during the company’s initial public offering (IPO).

Key Facts

• On April 24, 2026, the Financial and Securities Crime Joint Investigation Department rejected the warrant application submitted by the Seoul Metropolitan Police Agency’s Financial Crime Investigation Team.
• Bang is accused of fraudulent unfair trading under the Capital Markets Act for allegedly deceiving investors in 2019 by claiming there were no plans for a public listing.
• Police allege Bang induced investors to sell their stakes to a private equity fund linked to an acquaintance, while securing a secret contract to receive 30% of disposal gains post-listing.
• Authorities estimate Bang gained approximately 190 billion won (~$146M USD) in unfair profits through this private arrangement.
• Since the inquiry began in late 2024, Bang has been under a travel ban and was summoned for police questioning five times between September and November 2025.
• The warrant application was submitted immediately after the U.S. Embassy requested to lift Bang’s travel ban.
• The Seoul Southern District Court previously approved preservation orders for Bang's HYBE shares, freezing 156.8 billion won (~$120.6M USD) worth of assets in late 2023.

Key Terms

• Capital Markets Act: Regulations governing financial investment and securities markets to ensure fair trading and investor protection.
• Pre-indictment collection preservation: A legal measure to freeze a suspect's assets before formal charges to prevent the disposal of potential criminal proceeds.
• Fraudulent unfair trading: The use of deceptive practices or false information to gain an illicit advantage in financial markets.

Key Quote

"At this stage, we judged that the explanation regarding the reasons for requiring detention was insufficient, and thus requested a supplementary investigation." — Financial and Securities Crime Joint Investigation Department of the Seoul Southern District Prosecutors' Office

Next

• Police are identifying specific details requested by the prosecution for the supplementary investigation.
• Bang’s legal representatives maintain that the listing followed all legal regulations and no issues exist.