Koreaboo
8 minutes ago
The prosecution has rejected the arrest warrant for HYBE Chairman Bang Si Hyuk, who is accused of violating the Capital Markets Act (fraudulent unfair trading).
On the 24th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office returned the arrest warrant application for Chairman Bang to the police. The prosecution stated, “At this stage, there is insufficient evidence to justify detention” and requested further investigation.
Chairman Bang is suspected of providing false information to HYBE investors before the company’s 2019 IPO, indicating there were no plans for a stock listing, and then inducing them to transfer their shares to a private equity fund he established. The police believe Chairman Bang gained an unjust profit of around ₩190 billion KRW (about $128 million USD) in this process.
The police banned Chairman Bang from leaving the country last year and applied for an arrest warrant on the 21st.
Chairman Bang maintains that he did not deceive investors and that his decisions were based on investors’ requests. He also claims that the profit-sharing terms were proposed by the investors first, denying the charges.