Prosecutors on Thursday confirmed the second rejection of a police request for an arrest warrant targeting Bang Si-hyuk, the chairman and founder of K-pop entertainment giant Hybe. The decision cited insufficient supplementary investigation into allegations of unfair stock trading.
The Seoul Southern District Prosecutors Office revealed it returned the arrest warrant request for Bang Si-hyuk, who faces suspicion of violating the Capital Markets Act, to police on Wednesday following its refiling last week.
Explaining their decision, the prosecution stated, “After reviewing the arrest warrant, [we] rejected the request as areas previously identified for further investigation were not conducted.”
This latest attempt followed the police’s refiling of the warrant request last Thursday, after prosecutors had rejected their initial submission last month due to insufficient evidence.
Bang Si-hyuk stands accused of deceiving investors in 2019, leading them to sell their shares in Hybe prior to the company’s initial public offering (IPO). Through this alleged scheme, he purportedly secured approximately 260 billion won ($179.2 million) in illegal profits.
Under the Capital Markets Act, it is strictly prohibited to obtain financial gains through false statements or deceptive schemes involving financial investment products, including unlisted shares. Violations involving illicit profits exceeding 5 billion won carry severe penalties, ranging from life imprisonment to a minimum of five years behind bars.
Bang Si-hyuk has consistently denied these allegations, asserting that Hybe’s IPO strictly adhered to all applicable laws and regulations.
The investigation began after police received a tip-off regarding the allegations in late 2024, leading to raids on the Korea Exchange and Hybe’s headquarters the following year. As part of this extensive probe, Bang Si-hyuk was subsequently banned from leaving the country in August and has undergone multiple police interrogations.
In a notable development, the US Embassy in Seoul recently intervened, sending a letter to the police agency requesting permission for Bang Si-hyuk to travel to the United States. This travel is intended for him to participate in the K-pop supergroup BTS’ world tour. (Yonhap)
