On April 21, the Seoul Metropolitan Police Agency’s Financial Crimes Unit submitted a request for an arrest warrant, accusing Bang Si-hyuk of fraudulent unfair trading under the Capital Markets Act.
This development marks a major escalation in an investigation that has been ongoing for months.
The case centers on events prior to HYBE’s stock market debut in October 2020.
Police allege that in 2019, Bang Si-hyuk:
- Informed existing investors that there were no immediate plans for an IPO or that it would be delayed
- Encouraged them to sell their shares under this premise
- Subsequently acquired those shares through a special purpose entity (SPC) linked to a private equity fund involving HYBE executives
After HYBE went public, authorities believe he gained significant profits from the difference in share value.
The scale of the alleged profit has made this one of the most high-profile financial investigations involving a K-pop executive.
The probe has included:
- Raids on the Korea Exchange (June 2025)
- Search and seizure at HYBE headquarters in Seoul
- Five rounds of questioning of Bang Si-hyuk as a suspect
- A prolonged travel ban during the investigation
Additionally, the Financial Services Commission had already referred Bang and former HYBE executives to prosecutors on similar charges.
The case has also drawn international attention. Reports indicate that the U.S. Embassy in Korea requested a review of Bang’s travel ban due to upcoming BTS performances in the United States. This highlights the broader global impact HYBE has through its artists.
Bang Si-hyuk’s side has consistently denied wrongdoing, stating: “All actions during the IPO process complied with relevant laws and regulations, and there are no legal issues.”
The court will now:
- Schedule a pre-arrest warrant hearing
- Hear Bang Si-hyuk’s direct explanation
- Decide whether to approve or reject the arrest
The outcome could have significant implications not only for Bang personally but also for HYBE and the broader K-pop industry.
Sources: Yonhap News,Kyunghyang
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