HYBE chairman under arrest bid over $1.9B profit allegations

Apr 21, 2026, 12:25 pm

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Bang Si-hyuk appears at the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit in Mapo, Seoul, for questioning as a suspect. / Yonhap

South Korean police have applied for an arrest warrant for Bang Si-hyuk on allegations that he gained massive profits through fraudulent transactions during HYBE’s initial public offering (IPO) process.

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency said on April 21 that it requested the warrant on charges of fraudulent unfair trading under the Capital Markets Act.

Bang is accused of misleading existing shareholders and investors in 2019, ahead of HYBE’s IPO, by suggesting that the company had no plans to go public or that the listing would be delayed—despite ongoing preparations for the listing.

Police believe that through this process, Bang secured illicit gains of about 190 billion won (approximately $1.9 billion).

According to investigators, Bang encouraged investors to sell their HYBE shares to a private equity fund (PEF) by downplaying the likelihood of an IPO. He is also suspected of having a prior undisclosed agreement with the fund to receive 30% of the profits generated after the company went public.

Authorities launched a full-scale investigation in December last year after obtaining intelligence on the case. They later conducted raids on the Korea Exchange in Yeouido on June 30 to secure IPO-related documents and searched HYBE’s headquarters in Yongsan on July 24.

Bang has reportedly been questioned five times as a suspect. Based on collected evidence and testimonies, police determined that detention was necessary and proceeded with the warrant request.

Seoul Metropolitan Police Commissioner Park Jung-bo said at a press briefing the previous day that the investigation is “nearly complete” and could be concluded in the near future following legal review.

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