Police seek arrest warrant for Bang Si Hyuk over market law violation

Police have requested an arrest warrant for HYBE chairman Bang Si Hyuk over alleged violations of the Capital Markets Act.

On April 21 KST, the Seoul Metropolitan Police Agency’s financial crimes unit confirmed that it applied for a warrant to the Seoul Southern District Prosecutors’ Office, citing charges of fraudulent unfair trading. The move comes approximately one year and four months after the investigation began.

Bang is accused of misleading existing investors prior to HYBE’s 2019 IPO by suggesting that the listing would be delayed. He allegedly encouraged them to sell their shares to a special purpose company linked to a private equity fund established by a HYBE executive.

Following the IPO, the fund reportedly sold the shares, and Bang is suspected of receiving around 30 percent of the profits based on a prearranged shareholder agreement. Authorities estimate that the alleged gains exceed 190 billion KRW(~129 million USD).

Police stated that they sought detention due to the seriousness of the allegations and concerns over possible destruction of evidence.

Bang has denied the accusations.