Police Seek Arrest Warrant for HYBE Chairman Bang Si-hyuk

Police have applied for an arrest warrant for Bang Si-hyuk, chairman of Hybe, on charges of fraudulent trading, suspecting him of deceiving investors to sell their shares ahead of the company's initial public offering (IPO). The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit announced on the 21st that it had applied for an arrest warrant for Chairman Bang to the Seoul Southern District Prosecutors' Office. This comes approximately five months after Chairman Bang was investigated in November of last year.

Chairman Bang is accused of deceiving Hybe investors in 2019 by telling them there were no plans for a stock listing, leading them to sell their shares to a specific private equity fund, and then proceeding with the listing. Police suspect that Chairman Bang reaped illicit profits of approximately 190 billion to 200 billion won through a non-disclosure agreement signed with the private equity fund, receiving 30% of the sale profits after the listing.

The Capital Markets Act prohibits acts of obtaining financial benefits through false statements or using fraudulent schemes in relation to financial investment products, including unlisted stocks. Violators who gain profits of 5 billion won or more are subject to life imprisonment or imprisonment for at least five years.

Police received intelligence regarding these suspicions in late 2024 and conducted searches of the Korea Exchange and Hybe in June and July of last year, also imposing an overseas travel ban on Chairman Bang. As the police investigation has been prolonged, Chairman Bang's external activities have been restricted. The U.S. Embassy in Seoul even sent a letter to the National Police Agency requesting cooperation for Chairman Bang's visit to the United States, citing reasons such as the world tours of the group BTS.

Chairman Bang's side maintains that they complied with all relevant laws and regulations at the time of the company's listing and that there are no legal issues. Furthermore, regarding the arrest warrant application, they stated, "We regret that an arrest warrant has been applied for despite our sincere cooperation with the investigation for a long period," and added, "We will faithfully participate in the upcoming legal proceedings and do our best to explain our position."