Prosecutors in Seoul have declined a police request for an arrest warrant for Bang Si-hyuk, the chairman and founder of K-pop giant Hybe, over allegations of unfair stock trading. The Seoul Southern District Prosecutors’ Office returned the warrant request, citing insufficient evidence. Bang was accused of making illegal profits of about $175.28 million by deceiving investors in 2019 before Hybe’s IPO.
The prosecution stated that there was not enough evidence to justify detention at this stage and requested further investigation. The police will consider reapplying for the warrant after conducting additional inquiries, ensuring decisions are made following due process. The Capital Markets Act prohibits gaining financial benefits through false statements or deceptive schemes related to financial products like unlisted shares.
Bang has refuted the accusations, asserting that the IPO was conducted in compliance with the law and regulations. The investigation began after police received a tip-off in late 2024 and subsequently raided the Korea Exchange and Hybe’s offices. Bang, who was barred from leaving the country in August, faced restrictions on his activities. The U.S. Embassy in Seoul has urged authorities to allow him to travel to the U.S. for BTS’ world tour.
