A practicing lawyer shared their thoughts on whether HYBE Chairman Bang Si-hyuk should be arrested in connection with alleged illicit transactions.
Attorney Moon Yu-jin of Law Firm Pansim discussed the application for an arrest warrant for Chairman Bang Si-hyuk on her YouTube channel on the 22nd.
Firstly, regarding the possibility of Chairman Bang Si-hyuk’s arrest, Attorney Moon Yu-jin stated, “The first reason an arrest warrant could be issued is the gravity of the crime. The amount involved is extremely large. The most painful part is the sum of 190 billion won.” She added, “Violation of the Capital Markets Act is a crime that shakes the very foundation of the market economy, and courts view it very strictly. If the profit exceeds 5 billion won, the minimum sentence is 5 years in prison, and if 190 billion won is found guilty, a severe penalty is inevitable. The graver the crime and the higher the expected sentence, the more strongly a judge feels the necessity for arrest.”
She continued, “The second reason is the risk of evidence tampering.” She explained, “Chairman Bang Si-hyuk is the highest decision-maker of the massive HYBE empire. If he undergoes investigation and trial without detention, there is a possibility that he could use his position to damage internal company documents or pressure employees involved in the case to make favorable statements. The police are likely to strongly emphasize this point to the prosecutors and judges.”
However, Attorney Moon Yu-jin noted, “Chairman Bang Si-hyuk’s legal team is expected to mount a strong defense.” She argued, “A powerful reason for the warrant to be denied is the lack of flight risk. A face known worldwide has nowhere to hide and cannot illegally flee the country. An interesting point is that the U.S. Embassy in Korea requested cooperation for Chairman Bang Si-hyuk to travel for U.S. events. Ironically, this official document proves that Chairman Bang Si-hyuk is a person whose status is guaranteed as someone who needs to conduct global business.”
She continued, “The second point is the protracted nature of the investigation. Haven’t the police already thoroughly investigated? It’s been 1 year and 4 months since the police initiated their internal probe. Searches and seizures at HYBE and the Korea Exchange were completed last summer. He has also been summoned for questioning a remarkable five times.” She asserted, “From the perspective of prosecutors and judges, they might wonder, ‘The police have investigated for over a year and collected all the evidence, so what evidence is left to tamper with now?’ The fact that the arrest warrant was applied for five months after the last summons could also be evidence that the police’s investigative momentum has waned or that there is significant room for legal dispute.”
Meanwhile, Chairman Bang Si-hyuk, along with former HYBE executives, was accused in July last year of violating the Capital Markets Act. Chairman Bang Si-hyuk is suspected of deceiving existing investors in 2019, before HYBE’s listing, by stating there were no plans for an Initial Public Offering (IPO). He then allegedly orchestrated the sale of HYBE shares to a Special Purpose Company (SPC) established by a Private Equity Fund (PEF) created by former HYBE executives.
Furthermore, Chairman Bang Si-hyuk is suspected of defrauding existing shareholders by signing a shareholder agreement with the private equity fund, receiving approximately 30% of the PEF’s sale profits after the IPO. It is known that most of the existing investors were institutional investors, and their investments included the National Pension Service. Based on this, Chairman Bang Si-hyuk is reported to have personally gained 120 billion won, or over 190 billion won when combined with his accomplices.
Subsequently, on the 21st, the police applied for an arrest warrant for Chairman Bang Si-hyuk. The police had imposed a travel ban on Chairman Bang Si-hyuk in August 2025 and conducted a total of five investigations.
Chairman Bang Si-hyuk’s side maintains that there are no legal issues as all relevant laws and regulations were complied with during the company’s listing. The related investigation is currently in the final stages of legal review.
Amidst these developments, the U.S. Embassy in Korea reportedly sent a letter to Yoo Jae-sung, acting Commissioner General of the National Police Agency, requesting cooperation for Chairman Bang Si-hyuk and other high-ranking HYBE executives to visit the United States. The reasons for the visit are said to include attending the upcoming U.S. 250th Independence Day event on July 4th and supporting BTS’s U.S. concerts as part of their ongoing world tour.
In response, the police stated regarding the U.S. Embassy’s request to lift Chairman Bang Si-hyuk’s travel ban, “No such request has been received by the Seoul Metropolitan Police Agency. If a request comes, we will review its validity and act according to law and principle.” They also added, “The investigation is almost complete. We are currently reviewing the legal aspects, and we believe it can be concluded in the near future.”
