Arrest warrant possibilities raised as police review alleged Capital Market Act violations by HYBE Chairman Bang Si-hyuk

On Wednesday, October 22, Sports Kyunghyang reported that the South Korean police are currently holding a legal review on HYBE Chairman Bang Si-hyuk's alleged violation of the Capital Market Law. The legal review is taking place to seek an arrest warrant for the HYBE Labels Chairman based on the charges against him for unfair trading.

On October 20, according to Sports Kyunghyang, a representative of the Seoul Metropolitan Police Agency's Major Crimes Investigation Unit, stated that they've already completed the necessary and additional rounds of questions. The police are currently analyzing the evidence, collected materials, and testimonies to conduct a legal review. Here's what the representative said:

"As reported, additional questioning has been conducted, and we are thoroughly analyzing the collected materials and testimonies. We are also carrying out a legal review."

Furthermore, LKB & Partners' Attorney Jung Tae-won explained the entailments of a legal review and what can be expected out of the same, especially in the context of Bang Si-hyuk's alleged violation of the Capital Market Law. Here's what he stated:

"When police say they are conducting a 'legal review,' it doesn't simply mean examining the law. It means determining, based on the evidence and testimony gathered, whether a crime has actually been committed. The evidence may be ambiguous, so further review could be necessary. The key issues are whether there was deception of investors and intent, as the outcome of this case could significantly impact trust in the capital market."

He continued,

"Police may seek an arrest warrant to secure custody, while the defense could argue there's no risk of evidence destruction or fight and request an investigation without detention. It could turn into a battle between offense and defense, but given the police's current stance, the likelihood of a warrant request appears high."

HYBE also released a response statement expressing that they will fully cooperate with the investigations. Regardless, no progress on the investigations of HYBE Chairman, Bang Si-hyuk's alleged unfair trading has been revealed yet.

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All you need to know about the ongoing controversy and investigations around HYBE Chairman Bang Si-hyuk's alleged unfair trading practices

Previously, it was reported that Bang Si-hyuk was taken under investigation for his alleged unfair trading practices back in 2019, during the rebranding of BigHit Entertainment into HYBE Labels. Before the company's IPO, the chairman misled the investors by stating that HYBE Labels would not be opting for a public listing.

However, Bang Si-hyuk arranged to sell shares of the company through a private equity fund without informing the investors about the same. When HYBE became public in 2020, the private equity fund sold the shares and profits, amounting to 190 billion KRW was received by Bang Si-hyuk. This stands as a violation of the Capital Market Law.

The South Korean police reportedly began their investigations towards the end of 2024. They raided HYBE's headquarters in Seoul and also the Korea Exchange in Yeongdeungpo District, Seoul. They also reported that they have collected all the necessary details and pieces of evidence that are required for the investigation. In September 2025, the chairman went through two rounds of questioning by the police.

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Additionally, it was also reported recently that Bang Si-hyuk has been on a travel ban since August 11 after her returned from his business trip in the United States.

Edited by Aishwarya Sai