Prosecutors sent back an arrest warrant request for HYBE chair Bang Si-hyuk, who is suspected of "fraudulent unfair trading."
On the 24th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office returned the arrest warrant for Chair Bang that police had sought on charges of fraudulent unfair trading. It came three days after the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit applied for the warrant on the 21st.
Prosecutors said, "We determined that the explanation for reasons necessitating detention at this stage is insufficient and requested supplementary investigation."
Prosecutors suspect that in 2019, before HYBE's listing, Chair Bang provided information to existing investors and venture capital (VC) indicating there were no plans to list, then induced them to transfer equity to a private equity fund (PEF) established by an acquaintance.
Police believe Chair Bang reaped nearly 200 billion won in unjust gains, including receiving 30% of the capital gains after HYBE's listing through a confidential prearranged contract with the private equity fund.
Acting on internal intelligence, police opened an investigation, carried out searches and seizures at the Korea Exchange (KRX) and HYBE in June and July last year, and imposed an overseas travel ban on Chair Bang. They then summoned Chair Bang for questioning five times from September to November.