The Seoul Metropolitan Police Agency’s financial crimes unit said April 21 it requested the warrant on suspicion of fraudulent unfair trading. The move came about five months after police questioned Bang in mid-November.
Bang is accused of telling HYBE investors in 2019 that there were no plans to list the company, then having them sell shares to a specific private equity fund before proceeding with the IPO. Police believe Bang had previously signed a nonpublic agreement to receive 30% of the fund’s post-listing sale profits, and that he gained nearly 200 billion won in illicit profits.
Under South Korea’s Capital Markets Act, it is illegal to obtain financial gain by providing false information or using improper schemes involving financial investment products, including unlisted shares. If the violation yields profits of 5 billion won or more, the penalty can be life imprisonment or at least five years in prison.
Police said they began investigating after receiving a tip in late 2024. They raided the Korea Exchange and HYBE in June and July last year and barred Bang from leaving the country. As the probe dragged on, his public activities were also reported to have been constrained.
More recently, the U.S. Embassy in Seoul was reported to have sent a letter to the National Police Agency seeking cooperation for Bang’s visit to the United States, citing BTS world tour-related matters.
Bang’s side says the company complied with relevant laws and regulations during the listing process and that there is no legal issue.
* This article has been translated by AI.
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