Police Seek Arrest Warrant for HYBE Chairman Bang Si-hyuk

Police have applied for an arrest warrant for Bang Si-hyuk, chairman of HYBE. Chairman Bang is suspected of pocketing over 100 billion won in illicit profits by deceiving investors during HYBE's listing process.

Chairman Bang Si-hyuk has been under police investigation for allegations of deceiving investors and obtaining undue profits during HYBE's listing process. During his investigation last September, he stated, "I apologize for causing concern due to my affairs. I will diligently participate in today's investigation."

Police have applied for an arrest warrant for Chairman Bang on charges of fraudulent trading. Chairman Bang is accused of deceiving existing investors by claiming the IPO plans were delayed while pursuing HYBE's listing in 2019, and then selling shares to a special purpose corporation invested in by HYBE executives. After HYBE was listed, this corporation reaped significant profits by selling its shares, and police suspect Chairman Bang gained 190 billion won in illicit profits through this process.

The core of the case is whether Chairman Bang intended to deceive investors and induce the share sale while pursuing the listing. Police previously secured related evidence through searches of HYBE headquarters, the Korea Exchange, and the Financial Supervisory Service.

HYBE maintains that it adhered to all laws and regulations at the time of listing. Previously, in November of last year, the court accepted and approved a pre-indictment confiscation request for 150 billion won worth of HYBE shares owned by Chairman Bang.