Hybe Chairman Bang Si-hyuk is currently facing a request for an arrest warrant from the Seoul Metropolitan Police Agency over suspicions of fraudulent trading. The allegations stem from claims that Bang deceived investors in 2019, encouraging them to sell their shares in Hybe prior to the company’s initial public offering (IPO), through which he allegedly garnered nearly 200 billion won (approximately US$135.9 million) in illegal profits.
Police confirmed that their warrant request is based on substantial suspicions of fraudulent trading activities. Under South Korea’s Capital Market Act, individuals found guilty of making 5 billion won or more in profits by misrepresenting financial investment products could face severe penalties, including life imprisonment or a minimum prison term of five years.
Bang’s legal team has vehemently denied these allegations, asserting that Hybe’s IPO process was conducted strictly in accordance with all applicable laws and regulations. The investigation initiated in late 2024 following a tip-off, leading to subsequent raids on the Korea Exchange and Hybe’s corporate headquarters the following year.
Adding to the challenges, Bang was previously subjected to a travel ban, imposing significant restrictions on his domestic and international activities. In a notable development, the U.S. Embassy in Seoul recently intervened, dispatching a letter to the police agency to request permission for Bang to travel to the United States. This travel is reportedly crucial for him to participate in the upcoming world tour of the globally renowned K-pop supergroup, BTS.
