Update: Police Requests Arrest Warrant For HYBE Chairman Bang Si Hyuk + Legal Representative Comments

Updated April 21 KST:

Following the police’s request for an arrest warrant for HYBE Chairman Bang Si Hyuk on charges of fraudulent unfair trading, his legal representative has released a statement.

Bang Si Hyuk’s attorney stated, “It is regrettable that an arrest warrant has been requested despite his sincere cooperation with the investigation over a long period of time. We will faithfully participate in future legal proceedings and do our utmost to clarify the facts.”

Original Article:

The police has requested an arrest warrant for HYBE Chairman Bang Si Hyuk.

On April 21, the Seoul Metropolitan Police Agency’s Financial Crime Investigation Division announced that they requested an arrest warrant for Chairman Bang Si Hyuk, who is accused of violating the Capital Markets Act (fraudulent unfair trading).

Chairman Bang Si Hyuk is suspected of deceiving investors by claiming that there were no plans for an IPO before HYBE went public in 2019, thereby inducing investors to sell their shares to a specific private equity fund (PEF), only to proceed with the listing shortly thereafter.

Police believe that, under a private agreement made in advance with the private equity fund, Bang Si Hyuk received 30 percent of the profits from the sale of shares after the IPO, resulting in nearly 200 billion won (approximately $13,585,000) in illicit gains.

Bang Si Hyuk maintains that he did not deceive the initial investors, asserting that the sale was carried out at the request of the investors themselves and that the profit-sharing terms were conditions first proposed by the investors.

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