Concerns regarding a loss of momentum in the investigation have been raised after the prosecution rejected an arrest warrant requested by the police for HYBE Chairman Bang Si-hyuk, who is accused of gaining approximately 190 billion won through fraudulent and unfair transactions.
The Seoul Southern District Prosecutors' Office's Joint Investigation Team for Financial and Securities Crimes announced on the 24th that it had rejected the arrest warrant requested for Chairman Bang and demanded supplementary investigation. It was reported that the prosecution determined that "there is insufficient explanation regarding the reasons to acknowledge the necessity of an arrest at this stage."
Previously, the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit had requested an arrest warrant for Chairman Bang on the 21st on charges of violating the Capital Markets Act (fraudulent and unfair trading). This was the first attempt to secure his custody in the approximately 1 year and 4 months since the investigation began.
Chairman Bang is accused of inducing existing investors to sell their stakes to a special purpose company (SPC) of a private equity fund established by a former HYBE executive in 2019, prior to HYBE's listing, by informing them that the listing plans were delayed or uncertain. The police believe that after those stakes were sold following the listing, Chairman Bang acquired a portion of the profit from the sale in accordance with a prior agreement.
However, with the arrest warrant rejected, some are observing that the flow of the investigation may have hit a snag. In particular, as the first warrant request made after a long-term investigation was not accepted, attention is now focused on whether a warrant will be reapplied for in the future and the direction of the supplementary investigation.
Meanwhile, Chairman Bang's side is completely denying the allegations. Their position is that they complied with relevant laws during the HYBE listing process, that the sale of the stakes was at the request of the investors, and that there was no intention to gain unfair profits.
Previously, the police had been conducting the investigation by carrying out search and seizure operations at the Korea Exchange and the HYBE headquarters starting in 2024, and by summoning Chairman Bang for questioning five times.
(SBS Entertainment News | Kang Kyung-youn)