South Korean police are preparing to transfer the initial public offering fraud case involving HYBE bos Bang Si-hyuk to the prosecution for indictment this week, according to National Office of Investigation Head Hong Seok-ki. The impending handover marks a critical juncture following a 20-month investigation.
Capital Markets Act Violations and Alleged 200 Billion Won Profits
According to investigations outlined by Yonhap, Bang Si-hyuk faces accusations of violating the Capital Markets Act. Investigators allege he manipulated investors into selling their HYBE shares in 2019, just before the entertainment company’s official stock market debut.
Police documents indicate this pre-IPO scheme allegedly netted Bang an illegal financial advantage approaching nearly 200 billion won, or US$145 million. Under the purported arrangement, Bang was slated to receive 30 percent of the profits generated from post-IPO share sales.
Investigation and Rejected Arrest Warrants
The case has experienced significant procedural hurdles since initial inquiries began in December 2024. Full-scale enforcement actions ramped up in July of last year, culminating in a raid on HYBE’s corporate headquarters by law enforcement agents.
The path to prosecution faced delays after prosecutors twice rejected police requests for an arrest warrant, instead demanding additional investigative steps. Because of these rejections, law enforcement officials are forwarding the case file to the prosecution without seeking a formal detention order for Bang.
Bang Si-hyuk Denies All Wrongdoing
Despite the impending indictment referral, Bang Si-hyuk maintains his innocence and denies all allegations of defrauding early investors. According to statements attributed to Bang by Yonhap, the share transactions occurred entirely at the request of the investors themselves.
Furthermore, the defense maintains that the profit-sharing stipulations were originally proposed by the investors. These competing claims will form the core of the legal arguments evaluated by the prosecution once the case file arrives at their office.
Did you know?
Frequently Asked Questions
What are the specific charges against Bang Si-hyuk?
Bang is accused of violating South Korea’s Capital Markets Act by allegedly manipulating investors into selling their shares ahead of HYBE’s 2019 IPO to secure illicit profits.
Why are police transferring the file without a detention request?
Law enforcement is forwarding the case without seeking a warrant because prosecutors previously rejected two separate arrest warrant requests and mandated supplementary investigations.
How much money is involved in the alleged scheme?
According to police estimates reported by Yonhap, the disputed financial gain approaches nearly 200 billion won, roughly equivalent to US$145 million.
Keep reading