Prosecutors in South Korea announced Friday their decision to reject a police request for an arrest warrant targeting Bang Si-hyuk, the chairman and founder of K-pop entertainment giant Hybe. Bang Si-hyuk is currently under investigation for alleged unfair stock trading, but prosecutors cited insufficient evidence to justify his detention at this stage.
The Seoul Southern District Prosecutors’ Office returned the arrest warrant request to the police, which had been filed earlier this week. The charges against Bang Si-hyuk pertain to alleged fraudulent unfair trading, a serious offense under the Capital Markets Act.
The Hybe chairman was suspected of misleading investors in 2019, allegedly inducing them to sell their shares in the company prior to its highly anticipated initial public offering (IPO). Through this alleged scheme, Bang Si-hyuk is accused of illicitly profiting approximately 260 billion won (around $175.28 million).
“At this stage, there is insufficient evidence to justify the necessity of detention,” a prosecution official stated. “We have therefore requested a supplementary investigation to gather further proof.”
Police have confirmed they will review the possibility of reapplying for the arrest warrant following additional investigative procedures. They emphasized that any future decisions regarding the Hybe chairman’s case would be made “in accordance with due process.”
Under the Capital Markets Act, obtaining financial gains through false statements or deceptive schemes related to financial investment products, including unlisted shares, is strictly prohibited. Violations that involve profits exceeding 5 billion won carry severe penalties, including life imprisonment or a minimum of five years behind bars.
Bang Si-hyuk has consistently denied the allegations, asserting that Hybe’s IPO process adhered fully to all relevant laws and regulations.
The investigation into Bang Si-hyuk began in late 2024 after police received an initial tip-off. The following year, authorities raided both the Korea Exchange and Hybe’s corporate headquarters as part of their comprehensive probe. In August, Bang Si-hyuk was issued a travel ban, preventing him from leaving the country and imposing various restrictions on his activities.
Adding a notable detail to the ongoing situation, the US Embassy in Seoul recently sent a letter to the police agency. The embassy’s communication requested permission for Bang Si-hyuk to travel to the United States to facilitate his participation in the globally acclaimed K-pop supergroup BTS’ world tour. (Yonhap)
