The investigation into Bang Si Hyuk, chairman of HYBE, is heating up as the Seoul Metropolitan Police Agency’s financial-crimes unit says it’s conducting a detailed legal review and hinting at an imminent request for a detention warrant.
During a regular press briefing on Monday, a spokesperson for the Metropolitan Police confirmed that “apart from the two rounds of summons examinations already conducted, we’ve gathered additional testimony and documents, and we are analyzing them in depth.” They added that “legal review is also underway.”
Bang is under suspicion for violating the Capital Markets Act by allegedly telling early investors in HYBE in 2019 that there were no plans for an IPO, then facilitating the sale of those shares to a private‐equity fund tied to the company, only to proceed with the listing—with Bang reportedly receiving approximately 190 billion KRW (approx. ~$133 million USD) in gains.
Legal expert Jeong Tae Won of law firm LKB Pyeongsan says the core allegation is a violation of Article 178 of the Capital Markets Act (prohibition of deceptive trading). He notes: “The issue is whether Bang misled investors and arranged for profit after the listing.”
While the police emphasize that the investigation has not yet shown major breakthroughs after two summons, their focus on legal‐interpretation and evidence review suggests the possibility of moving to an arrest warrant is real. Jeong adds: “The phrase ‘legal review underway’ doesn’t simply mean reading the statute—it means verifying whether the collected evidence and testimony can constitute a criminal case.”
Another attorney, Noh Jong Eon of Jonjae Law Group, underscores the gravity: “Charges of ‘fraudulent trading’ can be called ‘a rebellion in the capital market.’ This means that when police talk about reviewing the law, they’re assessing whether to request detention and how solid the allegations are.”
HYBE has issued a statement saying it “proceeded with the IPO in compliance with laws and regulations, and we will actively cooperate and sincerely clarify the situation.” Bang himself, in a statement after a police summons, said, “I am sorry for causing concern and will faithfully cooperate with the investigation.”
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