As prosecutors sent back the arrest warrant requested by police for HYBE Chair Bang Si-hyuk on suspicion of "fraudulent unfair trading," police decided to continue a supplementary investigation.
An official at the Korean National Police Agency stated accordingly at a regular press briefing on the 27th. However, the official did not answer in detail regarding the specific matters of the supplementary investigation.
The Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors Office on the 24th returned the arrest warrant for Chair Bang, which police had sought on charges of fraudulent unfair trading. Prosecutors said, "We determined that, at this stage, the explanation for reasons requiring detention is insufficient, and we requested a supplementary investigation."
A Korean National Police Agency official also said it is "difficult to speak in advance" about whether police will reapply for an arrest warrant for Chair Bang.
Police also held back from commenting on the fact that the U.S. Embassy in Seoul asked for the travel ban on Chair Bang to be lifted.
An official at the Korean National Police Agency said, "There have been cases in the past where letters were exchanged," but added, "We are currently investigating the matter, and there are diplomatic issues, so it is difficult to disclose specifics."
Bang is suspected of having, before HYBE's 2019 listing, provided information to existing investors and venture capital (VC) indicating there were no plans to list, then inducing them to transfer equity to a private equity fund (PEF) established by an acquaintance.
Police believe Bang obtained nearly 200 billion won in illicit gains, including receiving 30% of the capital gains after HYBE's listing through a nondisclosure agreement made in advance with the private equity fund.