Police investigating HYBE Chair Bang Si-hyuk, who is accused of "fraudulent unfair trading," have moved to secure a warrant for detention.
The Seoul Metropolitan Police Agency's Financial Crime Investigation Division said on the 21st that it applied for an arrest warrant for Chair Bang on suspicion of fraudulent unfair trading.
Prosecutors allege that in 2019, before HYBE went public, Chair Bang provided existing investors and venture capital (VC) firms with information implying there were no plans for a listing, then induced them to transfer their equity to a private equity fund (PEF) set up by an acquaintance.
Police believe Chair Bang reaped nearly 200 billion won in illicit gains by receiving 30% of the capital gains after HYBE's listing through a confidential prearranged contract with the private equity fund.
The U.S. Embassy in Seoul recently sent a letter asking for cooperation to allow Chair Bang and other HYBE executives to visit the United States for reasons including BTS's world tour, but police appear not to have accepted it. Police imposed an overseas travel ban on Chair Bang in Aug. last year.
Park Jeong-bo, commissioner of the Seoul Metropolitan Police Agency, said at a regular press briefing the previous day, "We will review whether (lifting the travel ban) is appropriate and proceed according to the law and principles."
Chair Bang appeared before police five times in the second half of last year for questioning. Regarding this, Bang's legal counsel said, "It is regrettable that an arrest warrant was sought despite long-term good-faith cooperation with the investigation," adding, "We will faithfully engage in the legal process going forward and do our utmost to explain the facts."