South Korean prosecutors have formally declined a police request for an arrest warrant targeting Bang Si-hyuk, the founder and chairman of K-pop entertainment giant Hybe, Yonhap reports.
The Seoul Southern District Prosecutors’ Office returned the application to the police earlier this week. Authorities had sought to detain Bang on charges of fraudulent trading practices under the Capital Markets Act but prosecutors concluded that the current evidence was insufficient to justify his immediate detention.
The high-profile investigation centres on allegations that the music executive intentionally deceived investors back in 2019. Police suspect that he pressured early shareholders into offloading their stakes in the company prior to its highly anticipated initial public offering (IPO). Investigators claim this alleged scheme allowed Bang to pocket approximately 260 bn won (US$175.28 mln) in illegal financial gains.
In an official statement addressing the decision a spokesperson for the prosecution confirmed they have demanded a supplementary investigation. They noted that at this current stage there is simply not enough proof to warrant placing the executive behind bars.
The police force has stated it will conduct further inquiries before deciding whether to submit a second warrant application, promising that all future actions will strictly follow due process.
Under South Korean law obtaining financial advantages through false statements or deceptive schemes relating to unlisted shares is a severe offence. If the illegal profits exceed 5 bn won a conviction can carry a minimum sentence of five years in prison or even life imprisonment.
The music executive, his legal team and company representatives have vehemently denied all accusations of wrongdoing. Bang maintains that the company’s IPO was conducted entirely by the book and adhered to all relevant financial regulations.
The background
The probe originally stemmed from an anonymous tip-off received in late 2024. This intelligence prompted dramatic police raids on the Korea Exchange and Hybe’s corporate headquarters the following year. As the investigation intensified authorities imposed a strict travel ban on Bang Si-hyuk in August which has severely restricted his international business operations.
The situation has also drawn international diplomatic attention. The U.S. Embassy in Seoul recently intervened by sending a formal letter to the police agency. Officials requested that the travel ban be temporarily lifted so Bang Si-hyuk can travel to the United States to oversee the highly anticipated world tour of the global K-pop sensation BTS.
