SEOUL — South Korea’s financial crimes unit has moved to arrest Bang Si-hyuk, the visionary founder and chairman of HYBE, over allegations of a sophisticated stock-rigging scheme that predates the company’s 2020 market debut.
The Seoul Metropolitan Police Agency confirmed Wednesday it has asked prosecutors to request a court warrant for Bang, 53, following five rounds of questioning.
The "Double-Deception" Scheme
Investigators allege that in 2019, Bang intentionally manipulated investors to secure a massive personal windfall.
The Lie: Bang reportedly told early venture capital investors that HYBE had "no plans to go public," inducing them to sell their unlisted shares at a lower value.
The Secret Buyer: Those shares were bought by a private equity fund allegedly established by Bang’s close associates.
The Kickback: Bang reportedly signed a side agreement to receive a 30% cut of the profits once that fund sold its shares post-IPO.
The Payout: When HYBE debuted in October 2020, the fund sold its stake, netting Bang and other executives roughly 190 billion won ($136 million) in illicit gains.
Legal Stakes: Life Imprisonment?
The case is a major test for South Korea’s new "one-strike" policy against stock manipulation. Under the Capital Markets Act, illicit gains exceeding 5 billion won carry a mandatory minimum of five years in prison, with the maximum penalty being life imprisonment.
Bang’s legal team issued a statement expressing "deep regret" over the warrant request:
"We have provided full and consistent cooperation with authorities for over a year.
We will continue to follow all legal procedures to clearly demonstrate that the Chairman’s actions were entirely above board."
The BTS Factor & Diplomatic Friction
The timing of the arrest bid could not be more critical. BTS recently ended a four-year hiatus with a record-breaking comeback, releasing the album ARIRANG and preparing for a 34-city world tour.
U.S. Leg in Jeopardy: The tour is set to open in Tampa, Florida, on April 25.
Travel Ban: Bang has been barred from leaving South Korea since August 2025.
Diplomatic Request: In a rare move, the U.S. Embassy in Seoul reportedly requested a temporary lifting of Bang’s travel ban so he could oversee the tour and attend July 4th celebrations, a request South Korean police have so far ignored.
Market Reaction
While HYBE insisted that day-to-day operations and artist schedules remain unaffected, the market reacted sharply. HYBE shares fluctuated, dropping nearly 3% on Tuesday, even as the broader KOSPI index rose. Investors are now closely watching the court's decision on the warrant, which could be handed down as early as this week.
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