The police investigation into HYBE Chairman Bang Si-hyuk over alleged fraudulent transactions under the Capital Markets Act is set to be forwarded to prosecutors this week. This marks the approaching conclusion of the police probe into Bang after approximately 1 year and 8 months.
During a regular press conference held at the Korean National Police Agency in Seodaemun-gu, Seoul, on the 31st, Hong Seok-ki, head of the National Office of Investigation, stated, "Bang Si-hyuk is almost ready to be forwarded," adding, "I expect him to be forwarded sometime this week."
When asked whether an arrest warrant would be requested, he replied, "The decision regarding his detention status will come out when he is forwarded this week." It is currently reported that a forwarding without detention is most likely.
Bang has been under investigation by the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency for alleged fraudulent transactions in violation of the Capital Markets Act. He is accused of deceiving existing investors, such as venture capitalists, into believing there were no plans for an initial public offering before HYBE went public in 2019, and causing them to sell their stakes to a special purpose company established by a private equity fund linked to him.
At the time investors deceived by Bang sold their stakes to the special purpose company, HYBE was already undergoing preliminary IPO procedures such as applying for designated audits. Financial authorities estimate that Bang subsequently proceeded with the IPO and reaped unfair profits of approximately 190 billion won.
The police launched an internal probe into these allegations in December 2024 and began a full-scale investigation by raiding the HYBE headquarters in July of last year. They summoned Bang for questioning five times, and requested an arrest warrant in April, which prosecutors rejected while demanding supplementary investigations. They reapplied for an arrest warrant in May, but prosecutors did not file it with the court, stating that the request for supplementary investigations had not been fulfilled.
Photo = Reporter Baek Seung-chul
(SBS Entertainment News | Kang Kyung-youn)