An arrest warrant requested for Bang Si-hyuk, the chairman of Hybe, has been sent back by prosecutors for further investigation. He faces allegations of deceiving investors and gaining approximately 190 billion won in illegal profits.
The Financial and Securities Crime Joint Investigation Division at the Seoul Southern District Prosecutors’ Office returned the warrant to police authorities, requesting additional investigative work. Officials stated that the current evidence does not sufficiently demonstrate the necessity for detention.
This decision came three days after the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit submitted the arrest warrant. The accusations center on events from 2019, prior to Hybe’s stock market debut in 2020.
According to investigators, Bang allegedly misled existing shareholders by falsely claiming there were no plans for an initial public offering. This reportedly convinced them to sell their stakes to a private equity fund connected to him. Following the company’s subsequent listing, he is accused of improperly collecting 30% of the profits from stock sales—roughly 190 billion won—through undisclosed agreements with the fund.
Capital market regulations prohibit obtaining financial gains through deception or fraudulent schemes involving unlisted stocks and other investment products. Violations resulting in profits exceeding 5 billion won can lead to sentences of five years to life imprisonment.
Throughout five police interrogations conducted between September and November of the previous year, Bang’s legal team consistently denied all charges. Following the warrant application, his representatives stated they would “faithfully participate in all legal proceedings and make every effort to clarify the situation.”