South Korean Police Seek Arrest Warrant for HYBE Chairman Bang Si-hyuk Over IPO Allegations
Authorities allege Bang misled investors ahead of HYBE's listing and later profited through a private-equity-linked arrangement.
Black News 
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit on Tuesday (April 21) sought an arrest warrant for HYBE chairman Bang Si-hyuk, submitting the request to the Seoul Southern District Prosecutors’ Office on suspicion of fraudulent unfair trading under South Korea’s Capital Markets Act.
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The investigation centers on share transactions carried out ahead of HYBE’s IPO. Police allege that in 2019, Bang misled existing investors about the company’s listing plans, inducing them to sell their stakes into a private-equity-linked structure before the company went public. Investigators believe Bang later benefited from a prior undisclosed agreement tied to that arrangement.
Authorities suspect Bang received about 30% of the post-listing gains, with the alleged profit widely reported at around 190 billion won, or roughly $129 million. Bang has denied wrongdoing.
The legal exposure is substantial. Under the Capital Markets Act, any individual found to have generated 5 billion won ($3.4 million) or more through false representations about a financial product faces a minimum five-year prison term, with life imprisonment as the upper bound.
HYBE shares reversed course on the news, closing down 2.4% on Tuesday, while South Korea’s benchmark KOSPI rose 2.7% to a fresh intraday high. Bang has been barred from leaving South Korea since August 2025 and has been questioned five times during the investigation. Police also searched HYBE headquarters and the Korea Exchange as part of the probe.
The case has also drawn diplomatic attention. Korea’s National Police Agency confirmed that the U.S. Embassy in Seoul recently sent a letter seeking permission for Bang to travel to the United States despite the travel ban. According to police, the request sought a temporary suspension so Bang and other senior HYBE executives could attend an event tied to U.S. Independence Day and hold meetings related to BTS’ ongoing global tour. HYBE has denied requesting the embassy’s intervention, according to The Korea Herald. The embassy said it had nothing further to add.
Bang’s legal counsel said Tuesday: “We regret that a detention warrant has been sought despite our full and consistent cooperation with the investigation over an extended period. We will continue to cooperate with all legal procedures and make every effort to clearly explain our position.”
