The Prosecution Has Rejected The Arrest Warrant For Bang Si Hyuk, Why?
Prosecutors have rejected the arrest warrant request for Bang Si Hyuk, the chairman of HYBE.
On the 24th of April, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office dismissed the warrant that had been requested on charges of fraudulent unfair trading under the Capital Markets Act.
The prosecution explained, “At this stage, we determined that there is insufficient explanation regarding the necessity of detention, and we have requested supplementary investigation.”
Earlier on the 21st, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit had applied for the arrest warrant, alleging that Bang violated the Capital Markets Act through fraudulent transactions.
Bang is accused of misleading existing investors in 2019, prior to HYBE’s IPO, by claiming there were no plans to go public, encouraging them to sell their shares to a specific private equity fund. The company later proceeded with its listing.
Police believe that, based on a prior undisclosed agreement with the private equity fund, Bang received about 30% of the profits from the resale of shares, gaining approximately 190 billion won in illicit profits.
As part of the investigation, authorities conducted search and seizures at the Korea Exchange in Yeongdeungpo-gu, Seoul, in June last year to secure IPO-related documents, followed by a raid on HYBE’s headquarters in July. From September to November, Bang was summoned for questioning five times, and about 156.8 billion won worth of HYBE shares were frozen through a court order.
However, the investigation has since seen little progress. During the process, controversy also arose after the U.S. Embassy in Korea reportedly requested the lifting of Bang’s travel ban due to events involving BTS, raising questions about possible diplomatic issues.
Bang Si Hyuk’s legal representative stated, “It is regrettable that an arrest warrant was requested despite our long-standing cooperation with the investigation. We will continue to faithfully participate in legal procedures and do our best to clarify the matter.”
Source: (A)
