Arrest Warrant For Bang Si Hyuk?— Korean Police Updates On His Financial Fraud Investigation
The Seoul Metropolitan Police recently shared some updates on the investigation regarding HYBE founder Bang Si Hyuk’s alleged financial crime.
In a regular press briefing on October 20, KST, a representative from the Seoul Metropolitan Police Agency’s Metropolitan Investigation Unit shared that additional investigations into the allegations against Bang have been conducted, and the police were in the process of analyzing all collected materials and statements. They indicated that they were conducting a legal review, and there is even chatter about the possibility of them seeking an arrest warrant for the music magnate.
However, the authorities also added that no significant progress has been made in the investigation after Bang’s two recent summons interviews.
Chairman Bang is under investigation for allegedly violating the Capital Markets Act by deceiving HYBE investors in 2019, falsely claiming that there were no plans for the company to go public and then selling the shares to a specific private equity fund. After the listing process progressed, the equity firm sold its shares, and Bang reportedly made ₩190 billion KRW (about $133 million USD) in profits as per a prior agreement.
According to legal experts, the police’s statement about a legal review could very well indicate the possibility of an arrest warrant request. Attorney Jung Tae Won from the LKB Pyeongsan law firm explained that the “legal review” indicates that the police are carefully examining whether the gathered evidence and statements actually constitute a crime. It can also imply that the materials they have on hand currently are somewhat ambiguous, requiring further review.
The police can request an arrest warrant to secure custody, but the defense team can argue for a non-custodial investigation, citing no risk of evidence destruction or flight. It could become a battle between offense and defense, but given the current police stance, the possibility of an arrest warrant request is high.
— Jung Tae Won
Attorney Noh Jong Eon from the Jonjae law firm also inferred the same, stating that the violation of the Capital Markets Act is considered a very severe charge, demanding serious investigation. “Therefore, the phrase ‘legal review’ by the police can be interpreted as a thorough and multifaceted examination of whether to detain for investigation, and whether the charges are valid,” he added.
You can read more about Bang’s case here:
