Prosecutors have once again returned an arrest warrant for Bang Si-hyuk, chairman of HYBE, to the police, citing incomplete supplementary investigations regarding allegations of deceiving investors before the company's IPO.
According to Yonhap News, the Seoul Southern District Prosecutors' Office rejected the police's renewed request for the warrant on May 6. Prosecutors stated, "We found that the requested supplementary investigations were not completed, leading to the warrant's dismissal."
In response, the police have stated they have no further comment on the prosecutors' decision. Just six days after the initial warrant was rejected, the police refiled the request on April 30, alleging fraudulent trading under the Capital Markets Act.
When the warrant was initially returned, prosecutors indicated that there was insufficient justification for the arrest at that stage, prompting the request for further investigation.
After receiving the warrant back, the police conducted supplementary investigations regarding Bang's potential flight risk, evidence tampering, and recidivism, concluding that an arrest was still necessary.
Bang is accused of misleading HYBE investors in 2019 by claiming there were no plans for an IPO while selling shares to a private equity fund, which later profited from the IPO. Police estimate that Bang gained approximately 260 billion won ($190 million) in illicit profits from this scheme.
The Capital Markets Act prohibits obtaining financial benefits through false statements or fraudulent schemes, with penalties of life imprisonment or a minimum of five years in prison for profits exceeding 5 billion won.
The police began investigating Bang in late 2024 after receiving tips, transitioning to a public investigation in mid-2025 following searches of the Korea Exchange and HYBE.
In early August 2025, the police imposed a travel ban on Bang upon his return from the U.S. and summoned him for questioning five times between September and November of that year. They also froze his HYBE shares valued at approximately 156.8 billion won.
Meanwhile, while the total number of cases referred last year decreased compared to 2024, the number of requests for supplementary investigations has risen, raising concerns about escalating tensions between police and prosecutors. Since the introduction of the supplementary investigation request authority in 2021, there has been an increase in back-and-forth demands for further inquiries, highlighting ongoing friction between the two agencies.
* This article has been translated by AI.
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