Police reapplied for an arrest warrant for HYBE Chair Bang Si-hyuk on suspicion of "fraudulent unfair trading," but prosecutors sent it back again.
On the 7th, according to legal sources, the Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors Office dismissed the arrest warrant for Chair Bang that the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit had refiled the previous day.
Prosecutors said, "After reviewing the arrest warrant, we dismissed the application because the requested supplementary investigation had not been carried out."
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit first applied for an arrest warrant for Chair Bang on the 21st of last month. However, prosecutors said, "We determined that the explanation for the reasons necessitating detention at this stage was insufficient and requested supplementary investigation," and sent it back on the 24th of the same month.
Six days after it was returned, on the 30th of last month, police again applied for an arrest warrant for Chair Bang, but prosecutors sent it back again. It has not been decided whether police will reapply for an arrest warrant.
Chair Bang is suspected of having provided information to existing investors and venture capital (VC) indicating there were no plans to list HYBE before its 2019 listing, then inducing them to transfer equity to a private equity fund (PEF) established by an acquaintance.
Police believe that through a nondisclosure agreement concluded in advance with the private equity fund, Chair Bang received 30% of the capital gains after HYBE's listing and took nearly 200 billion won in unjust profits.
Based on internal intelligence, police launched the investigation and since last year have conducted searches and seizures and summons for questioning.