Prosecutors have rejected the arrest warrant for HYBE Chairman Bang Si-hyuk, who is accused of defrauding investors before the company's initial public offering (IPO). The Seoul Southern District Prosecutors' Office determined that there was insufficient justification for his arrest at the current stage and requested supplementary investigation from the police. The police plan to review reapplying for the warrant after further investigation.

The Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office returned the arrest warrant application for HYBE Chairman Bang Si-hyuk, filed on charges of fraudulent unfair trading under the Capital Markets Act, to the police. Prosecutors determined that there was insufficient evidence to justify the necessity of arrest at the current stage and requested supplementary investigation from the police. This decision is expected to be a significant turning point in the long-running investigation. Chairman Bang Si-hyuk is accused of deceiving investors by telling them there were 'no plans for stock listing' before the company's initial public offering (IPO), thereby inducing them to sell their shares to a private equity fund.

▲ Background of Chairman Bang Si-hyuk's Arrest Warrant Rejection

Police believe that Chairman Bang acquired illicit profits totaling approximately 260 billion won, including about 190 billion won, which represents 30% of the sale profit after HYBE's listing, through a private contract with a private equity fund. The Capital Markets Act strictly prohibits obtaining financial benefits through false statements or using fraudulent schemes in connection with financial investment products. Specifically, obtaining profits of 5 billion won or more is classified as a serious crime punishable by life imprisonment or a prison term of at least five years. The prosecutors' decision suggests a cautious approach to the coercive measure of arrest, regardless of the severity of the charges.

The origin of this case dates back to 2019. At that time, Chairman Bang publicly stated that there were no listing plans, inducing investors to sell their shares, and subsequently listed HYBE to realize profits—this is the core of the police investigation. Whether such actions undermined the fairness of the capital market and caused losses to investors is expected to be a major point of contention in court. The prosecutors' request for supplementary investigation leaves room for securing additional evidence and legal arguments regarding the charges.

▲ Full Story of the Alleged Investor Deception Before HYBE's Listing

Police initiated an internal investigation in late 2024 after receiving intelligence on Chairman Bang. Subsequently, in June and July 2025, they conducted search and seizure operations at the Korea Exchange and HYBE headquarters, transitioning to a public investigation. In early August of the same year, a travel ban was imposed on Chairman Bang upon his return from the United States, and he underwent a total of five summons for questioning from September to November. During the investigation, HYBE shares worth 156.8 billion won held by Chairman Bang were frozen through a court order.

However, for over five months after the summons, the police took no further action, citing legal review, which led to speculation that there might be difficulties in establishing the charges or complex legal issues. Separately, financial authorities received a complaint against Chairman Bang in July 2025, and the case was assigned to the Seoul Southern District Prosecutors' Office, where special judicial police of the Financial Supervisory Service conducted the investigation under the prosecutors' direction. This complex investigative process involving multiple agencies is interpreted as one of the backgrounds for the decision to reject the arrest warrant.

▲ Investigation Progress and Future Legal Outlook

Following the prosecutors' request for supplementary investigation, the police plan to carefully review whether to reapply for the warrant. A police official stated, "We will make a judgment according to procedure," indicating their commitment to focusing on further investigation. This decision means that a legal judgment on Chairman Bang's charges has not yet been finalized, and the direction of the case could significantly change depending on future investigation results. While the rejection of the arrest warrant does not deny the charges, it indicates that prosecutors assessed the necessity of proceeding with the investigation through Chairman Bang's detention as low at the current stage.

This case serves as another opportunity to raise public awareness about fairness and transparency in the capital market. As the importance of monitoring and punishing unfair practices that may occur during the IPO process of large corporations is emphasized, attention is drawn to what conclusion the investigation into Chairman Bang Si-hyuk will reach. The scope of Chairman Bang's legal responsibility is expected to become clear based on the results of the police's supplementary investigation and the prosecutors' final judgment.