The Seoul Southern District Prosecutors’ Office has once again rejected a police request for an arrest warrant against Bang Si-hyuk, who remains under investigation over allegations tied to HYBE’s IPO process and possible violations of South Korea’s Capital Markets Act.
The Joint Investigation Unit for Financial and Securities Crimes confirmed on May 7 that police had resubmitted the warrant request on April 30 after prosecutors previously returned the initial application on April 24, requesting supplementary investigation and additional evidence.
However, prosecutors stated that the issues they previously requested to be addressed “had not been fulfilled,” leading them to reject the warrant request for a second time on May 6.
Police from the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit had first applied for an arrest warrant against Bang on April 21. At the time, prosecutors said there was insufficient explanation “at the current stage” to justify detention and instructed police to conduct further investigation.
Following that decision, police said they were supplementing the case before reapplying for the warrant six days later.
Bang is accused of misleading investors ahead of HYBE’s 2020 public listing. According to investigators, Bang allegedly told existing shareholders in 2019 that there were no plans for an initial public offering, leading some investors to sell their shares to a specific private equity fund.
Authorities allege that the fund was connected to individuals close to Bang, including former outside directors and HYBE-related executives. Police further suspect that a special purpose entity established through the private equity structure later acquired those shares before HYBE went public in 2020.
After the IPO, the fund reportedly sold large amounts of HYBE stock for substantial profits.
Investigators believe Bang received approximately 190 billion won (about $137–138 million) in improper gains through a private agreement entitling him to 30% of the fund’s post-IPO profits.
Bang’s legal team has denied wrongdoing, arguing that the transactions were conducted at the request of investors and within legal boundaries.
The investigation has drawn increasing scrutiny in South Korea due to both its scale and duration.
Police began probing the case in late 2024 and have questioned Bang five times over the past 16 months as a suspect. Authorities also raided HYBE’s headquarters in Yongsan and the Korea Exchange, while Bang was placed under a travel ban preventing him from leaving the country.
Although police stated in December that the investigation was largely complete and under legal review, the case appeared to stall for several more months afterward, leading to criticism over the pace of the probe.
Bang remains subject to the travel restriction.
The latest developments also come after the U.S. Embassy in Seoul reportedly requested that South Korean authorities temporarily lift Bang’s travel ban so he could travel to the United States for business-related purposes tied to BTS’s upcoming U.S. world tour activities later this month.
According to reports, the embassy sent a letter to acting Korean National Police Commissioner Yoo Jae-sung requesting permission for Bang, HYBE CEO Lee Jae-sang, and HYBE executive Kim Hyun-jung to visit the United States.
It is considered highly unusual for the U.S. Embassy to directly request the lifting of a travel ban involving specific individuals under investigation in South Korea.
Despite that request, police moved forward with renewed efforts to secure an arrest warrant against Bang.
Bang’s legal representatives criticized the latest warrant application, stating, “It is regrettable that an arrest warrant was sought despite our client’s long-term and sincere cooperation with the investigation,” while adding that they would continue cooperating with all future legal proceedings and fully present their case.
