Bang Si Hyuk faces arrest warrant request over alleged IPO fraud, says “Do my best to clarify the matter”

Police have applied for an arrest warrant for HYBE Chairman Bang Si Hyuk in connection with allegations of fraudulent unfair trading related to the company’s initial public offering (IPO).

On April 21, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency submitted the warrant request to the Seoul Southern District Prosecutors’ Office. The investigation has been ongoing for approximately one year and five months.

Bang is suspected of violating South Korea’s Capital Markets Act by allegedly misleading investors ahead of HYBE’s 2019 IPO. Investigators claim he suggested that the company’s listing would be delayed, leading certain investors to sell their shares to a private equity fund under false assumptions.

Authorities allege that this arrangement resulted in substantial financial gains following HYBE’s eventual listing. Police estimate the suspected illicit profits at around 190 billion KRW (approximately 140 million USD), largely derived from post-IPO share transactions conducted by the private equity fund.

As part of the investigation, Bang was questioned five times between September and November last year as a suspect. The Capital Markets Act prohibits the use of false or misleading information to obtain financial gains in connection with financial investment products. Investigators argue the alleged conduct may fall under these provisions.

Bang has denied all allegations. Through his legal representative, he expressed regret over the warrant request, stating that he has “faithfully cooperated with the investigation over a long period.”

He also emphasized that he will “do his best to clarify the matter and fully explain his position” through all legal procedures.

The Seoul Southern District Prosecutors’ Office will now determine whether to seek an arrest warrant. If approved, a pre-trial detention hearing is typically held within two to three days.