Arrest Warrant Against HYBE CEO Bang Si-Hyuk Rejected Again, Here's Why Police's Second Attempt FAILED

Bang

Si-Hyuk has been involved in the infamous illegal trading case since a long time now and although his troubles are far from over, for now, the HYBE founder has avoided arrest once again. South Korean prosecutors have rejected a second police request for an arrest warrant against the chairman of the K-pop entertainment giant, citing insufficient supplementary investigation into the allegations tied to HYBE’s pre-IPO stock dealings. The decision is another setback for investigators pursuing one of the most high-profile financial probes in the Korean entertainment industry in recent years. Bang Si-Hyuk, who built HYBE into a global powerhouse through K-pop groups like BTS, has repeatedly denied all accusations against him.

Bang Si-Hyuk dodges arrest again

According to the Seoul Southern District Prosecutors Office, the arrest warrant request submitted by police last week was formally rejected on Wednesday, May 6. Prosecutors explained that investigators had failed to sufficiently conduct the additional inquiries previously requested after the first warrant attempt was denied.“After reviewing the arrest warrant, (we) rejected the request as areas that had been requested for further investigation were not conducted,” prosecutors said in an official statement.

Despite the seriousness of the allegations, prosecutors have repeatedly said that the current evidence and investigative material are insufficient to justify detention. This is now the second failed warrant attempt. Police first applied for Bang’s arrest last month, but prosecutors rejected that request as well, stating that the reasons requiring detention had not been adequately demonstrated at that stage.

More about the illegal trading case

The case is being built around allegations that Bang Si-Hyuk deceived investors in 2019 ahead of HYBE’s blockbuster IPO. Police suspect the chairman misled shareholders into selling their stakes in the company by allegedly suggesting that an IPO was unlikely to happen. Investigators claim this allowed Bang and affiliated private equity entities to secure massive financial gains once HYBE eventually went public.Authorities estimate the alleged unfair profits at around 260 billion won, or roughly $179 million. Under South Korea’s Capital Markets Act, obtaining financial gains through deceptive schemes or false statements related to investment products is considered a serious criminal offense. Violations involving profits exceeding 5 billion won can carry penalties ranging from a minimum of five years in prison to life imprisonment.

The investigation itself has steadily intensified over the past year. Police reportedly received an initial tip-off in late 2024 before launching a wider probe into HYBE’s IPO process. Authorities later raided both HYBE headquarters and the Korea Exchange as part of the investigation. Bang was also banned from leaving South Korea in August and has already undergone multiple rounds of questioning.The case has attracted enormous public attention because of HYBE’s global influence in the music industry. Under Bang’s leadership, the company transformed from a mid-sized agency into an international entertainment giant, largely due to the worldwide success of BTS. Interestingly, the controversy has also intersected with HYBE’s business operations abroad. Reports recently revealed that the United States Embassy in Seoul sent a letter to Korean police requesting permission for Bang to travel to the United States.