Arrest Warrant For HYBE’s Bang Si Hyuk? Why Police Are Hesitating

South Korean police are facing mounting scrutiny over whether they will request an arrest warrant for HYBE chairman Bang Si Hyuk as a high-profile capital markets investigation drags on without a clear conclusion.

The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit has been investigating Bang over allegations tied to HYBE’s 2019 pre-IPO period. Bang is accused of misleading early investors by stating that there were no plans for a public listing, encouraging them to sell their shares to a specific private equity fund.

HYBE later proceeded with an initial public offering, raising suspicions that investors were deliberately deceived for financial gain. Such conduct, if proven, would violate South Korea’s Capital Markets Act, which prohibits gaining profits through false statements or fraudulent schemes involving financial investment products.

Despite summoning Bang for questioning five times, conducting search and seizure operations at HYBE and the Korea Exchange, and imposing a travel ban, police have yet to request an arrest warrant. The delay is not due to a lack of investigation but rather the high risks involved. If a court rejects the warrant request, police fear it could severely weaken the case and damage the credibility of the entire investigation.

Another key reason for caution is the involvement of the Financial Supervisory Service’s Special Judicial Police, which is running a parallel probe into possible financial and securities law violations. Police are concerned that once a warrant request is submitted, prosecutors could gain access to investigative records and shift control of the case to the Financial Supervisory Service, effectively sidelining the police-led investigation.

Internal differences are also reportedly slowing progress. While frontline investigators are said to be confident they can substantiate the charges, the National Investigation Headquarters is pushing for a more conservative approach, stressing the need for airtight legal reasoning before moving forward.

Given the sheer scale of the case and the potential repercussions if the investigation fails, it would be difficult to proceed as quickly as with an ordinary case. There is also a tendency for delays as multiple major cases have piled up.

— Anonymous Senior Police Official

Given the scale of HYBE, the potential impact on financial markets, and the political and legal sensitivity surrounding the case, police appear determined to avoid missteps. For now, the investigation is nearing its final review stage, but whether it will result in an arrest warrant for Bang Si Hyuk remains uncertain.