Police have applied for an arrest warrant for Bang Si-hyuk, Chairman of HYBE, on charges of ‘fraudulent unfair trading’, drawing significant attention to the future developments and ultimate conclusion of the high-profile case.
The police submitted the arrest warrant application for Chairman Bang Si-hyuk on the 21st.
Chairman Bang Si-hyuk is accused of misleading existing investors in 2019, prior to HYBE’s highly anticipated public listing (IPO), by falsely stating there were no immediate plans for an initial public offering. This alleged deception led these investors to sell their shares to a Special Purpose Company (SPC) established by a Private Equity Fund (PEF) formed by HYBE executives.
Investigators suspect Chairman Bang Si-hyuk subsequently received 30% of the sale profits after the listing, accruing approximately 190 billion Korean Won (roughly $138 million USD, approximate value as of mid-2024) in illicit gains. This was allegedly based on a confidential, pre-listing agreement with the private equity fund.
Following a prolonged and extensive investigation, police imposed a travel ban on Chairman Bang Si-hyuk in August 2025 and have conducted a total of five interrogations to date.
Chairman Bang Si-hyuk’s legal team maintains that all relevant laws and regulations were complied with during the company’s listing, asserting that there are no legal issues. The ongoing investigation has reportedly completed its legal review phase.
Adding another layer of international interest to the case, the U.S. Embassy in Korea recently sent a letter to Yoo Jae-sung, the Acting Commissioner General of the National Police Agency. The letter reportedly requested cooperation to facilitate a visit to the United States for Chairman Bang Si-hyuk and other high-ranking HYBE executives. The stated reasons for the visit include attending the 250th U.S. Independence Day celebration on July 4th and providing support for BTS’s ongoing world tour in the U.S.
In response to the U.S. Embassy’s request to lift Bang Si-hyuk’s travel ban, the police stated, “No such request has been formally received by the Seoul Metropolitan Police Agency. Should a request be submitted, we will review its validity thoroughly and proceed according to legal principles and established procedures.” They further added, “The investigation is nearing its conclusion. It is currently under legal review, and we anticipate it can be finalized in the near future.”
