South Korean prosecutors have once again rejected a police request for an arrest warrant for HYBE Chairman Bang Si-hyuk, who faces charges of reaping massive profits by misleading existing investors about the company's listing plans and buying back their shares ahead of its initial public offering (IPO).
The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office said Monday that it had received the rearrested warrant request filed by police on Oct. 30, related to the Bang case for which it had requested supplementary investigation from the Seoul Metropolitan Police Agency on Oct. 24. "After review, we rejected the arrest warrant request on the 6th of this month because the items for which supplementary investigation had been requested were not fulfilled," the prosecutors' office said.
Police had initially filed an arrest warrant request against Bang on Oct. 21, but prosecutors returned it on Oct. 24, stating that "we determined that the justification for detention at the current stage was insufficient and requested supplementary investigation." Police then said they were "investigating and supplementing the requested parts" before refiling the arrest warrant request against Bang on Oct. 30.
Bang is accused of telling existing investors in 2019 that the company had no listing plans, then purchasing existing shareholders' stakes through a special purpose vehicle established by a private equity fund funded by HYBE executives, and pocketing approximately 190 billion won ($140 million) in illicit gains by selling off a large portion of shares after the 2020 listing. Police believe Bang had signed a private agreement with the private equity fund in advance, receiving 30% of the post-listing sale profits. Bang's side maintains that the move was made at the investors' request.
Police launched their investigation into Bang in late 2024 but have faced criticism for "delayed investigation" as they have yet to reach a conclusion a year and a half later. Police conducted searches of HYBE's Yongsan headquarters and the Korea Exchange, questioned Bang as a suspect on Sept. 14, Sept. 22, Nov. 5, Nov. 7, and Nov. 9 last year, and imposed a travel ban, but no further news followed. Police said around December last year that they had wrapped up questioning and were reviewing legal principles, but the investigation had effectively stalled for about five months thereafter.
Bang is currently under a travel ban. Earlier this month, the U.S. Embassy in Seoul sent a letter to Acting Korean National Police Agency Commissioner Yoo Jae-sung requesting that Bang, HYBE CEO Lee Jae-sang, and Vice President Kim Hyun-jung be allowed to visit the United States. BTS is scheduled to begin a world tour in the United States later this month. It is unusual for the U.S. Embassy to directly request that Korean police lift a travel ban on specific individuals. However, police effectively rejected the embassy's request by proceeding with the arrest warrant application.
Bang's attorney said, "It is regrettable that an arrest warrant was requested despite long-term sincere cooperation with the investigation," adding, "We will faithfully participate in future legal proceedings and do our best to explain our position."
