Prosecutors again reject arrest warrant for HYBE Chairman Bang Si-hyuk

The ongoing investigation into HYBE Chairman Bang Si-hyuk concerning allegations of fraudulent stock trading has taken another turn, with prosecutors once again rejecting a request for his arrest. This decision, as reported by Hankyoreh, highlights a persistent friction between the police and prosecution services, a dynamic that has been evident since the early stages of the inquiry.

The Seoul Southern District Prosecutors' Office stated that the arrest warrant request, re-submitted by the police on April 30th, was denied on May 6th due to the failure to implement requested supplementary investigations. This follows a similar rejection of an initial warrant request on April 24th, underscoring the prosecution's stance that further investigative steps are necessary before considering detention.

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The requested supplementary investigation details have not been implemented, and therefore, the arrest warrant application was rejected.

The core of the allegations centers on Bang's alleged deception of existing HYBE shareholders regarding the company's stock listing plans. He is accused of selling his shares to a private equity fund, which he allegedly misled about the IPO, subsequently profiting approximately 190 billion won from the transaction. The Capital Markets Act stipulates severe penalties, including imprisonment of five years or more, for fraudulent trading activities resulting in profits exceeding 5 billion won.

This repeated rejection of arrest warrants raises concerns about the momentum of the investigation. The police have been pursuing this case for over a year, conducting searches and interrogations. The back-and-forth between law enforcement agencies, particularly the police and prosecution, is a significant aspect of this story within South Korea. While international coverage might focus solely on the financial implications, the internal procedural disputes and the sheer scale of the alleged fraud, involving substantial sums and a major player in the K-pop industry, make this a particularly contentious and closely watched case domestically.

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We are rigorously re-supplementing the areas where the prosecution requested supplementary investigations.