South Korean prosecutors have rejected a police request for an arrest warrant against HYBE Chairman Bang Si-hyuk, just days after officers applied for his detention in connection with an investigation into alleged unfair trading tied to the company’s 2020 IPO.
That’s according to Yonhap News Agency, which reports today (April 24) that the Seoul Southern District Prosecutors’ Office declined the warrant request. Police had applied for the warrant on charges of unfair trading under the Capital Markets Act, the outlet reported.
“At this stage, there is insufficient evidence to justify the necessity of detention, and we have therefore requested a supplementary investigation,” the prosecution said, according to Yonhap.
The decision came after the financial crimes unit of the Seoul Metropolitan Police Agency applied for an arrest warrant for Bang on Monday (April 21).
That warrant application itself followed an announcement from Seoul Metropolitan Police Agency Commissioner Park Jung-bo, who had told reporters the day before the warrant application that that the investigation into Bang was “essentially complete” and nearing conclusion, as reported by The Korea Herald.
Bang is accused of misleading investors in 2019 by telling them that HYBE (then known as Big Hit Entertainment) had no plans to pursue an initial public offering, while the company was allegedly already undergoing pre-IPO procedures.
Investors reportedly sold their holdings to a private equity fund based on those assurances. According to Yonhap, Bang is suspected of generating approximately 260 billion won (approx. $175 million) through the scheme.
Bang has denied the allegations. According to Yonhap, he has said the IPO followed the law and regulations.
When police applied for the warrant on April 21, Bang’s legal team, in a statement to the Associated Press, expressed regret that officers were seeking his arrest “despite our full and consistent cooperation with the investigation over an extended period.”
Bang has reportedly been under a travel ban since August 2025 and was summoned by police twice for questioning in September of that year. He returned to Seoul from the United States in August 2025 to face questioning, telling staff at the time that he felt “a deep sense of regret” that the situation might be affecting HYBE’s artists and employees.
As previously reported, Bang and three other executives were referred to prosecutors in July 2025 by regulators for a probe into alleged unfair trading connected to the IPO.
The case remains under investigation. Prosecutors have requested that police conduct further evidence-gathering.
Korean media reported recently that the US Embassy in Seoul had sent a letter to the police agency requesting that Bang and other HYBE executives be permitted to travel to the US, citing BTS’s ARIRANG world tour – the US leg of which opens in Tampa later this month – and July 4th celebrations.
HYBE denied involvement in the embassy letter, saying it had “not requested the US Embassy to seek the lifting of Chairman Bang’s travel ban”.Music Business Worldwide
South Korean prosecutors have recently declined a police request to issue an arrest warrant for Bang Si-hyuk, the Chairman of HYBE, amid an ongoing investigation into alleged unfair trading linked to the company’s initial public offering (IPO) in 2020. The Seoul Southern District Prosecutors’ Office made this decision on April 24, citing insufficient evidence to justify the necessity of detention and requesting a supplementary investigation instead.
The police had sought the warrant on April 21, following statements from Seoul Metropolitan Police Agency Commissioner Park Jung-bo, who indicated that their investigation into Bang was nearing completion. Bang is accused of misleading investors in 2019 by claiming that HYBE, previously known as Big Hit Entertainment, had no plans for an IPO, while it was allegedly already engaged in pre-IPO activities. As a result of these assurances, investors reportedly sold their shares to a private equity fund, and Bang is suspected of generating around 260 billion won (approximately $175 million) through this alleged scheme. Bang has denied the accusations, asserting that the IPO complied with relevant laws and regulations.
Following the warrant application, Bang’s legal team expressed disappointment, stating that it was regrettable for the police to seek his arrest despite his full cooperation with the investigation over a prolonged period. Bang has been under a travel ban since August 2025, and he returned to Seoul from the United States that same month to participate in questioning. He expressed concern that the legal troubles might negatively impact HYBE’s artists and employees.
The investigation into Bang and three other executives began in July 2025 when regulators referred them for alleged unfair trading related to the IPO. The prosecutors have since called for further evidence-gathering by the police. In a recent development, Korean media reported that the US Embassy in Seoul had contacted the police agency, requesting permission for Bang and other HYBE executives to travel to the US. This request was tied to BTS’s ARIRANG world tour, which includes performances in the US starting later this month, as well as the July 4th celebrations. However, HYBE denied any involvement with the embassy’s request concerning the travel ban for Chairman Bang.
The situation remains ongoing, with prosecutors continuing their investigation and gathering more evidence as the case develops.
