South Korean police have filed for an arrest warrant against Hybe Corporation chairman Bang Si-hyuk on allegations of fraudulent stock trading related to the company’s 2020 public listing.
According to the Seoul Metropolitan Police Agency’s financial crimes unit, Bang is accused of misleading existing shareholders by claiming there were no plans to seize Hybe public, while simultaneously facilitating the sale of company shares to a private equity fund linked to his associates.
Following Hybe’s subsequent initial public offering, prosecutors allege Bang profited from the transaction by selling shares acquired through the fund, securing approximately 190 billion won in illicit gains.
The warrant request cites violations of South Korea’s Capital Markets Act, specifically charges of deceptive and unfair trade practices. Police confirmed they had questioned Bang on five prior occasions as a suspect before pursuing the warrant.
The development marks a significant escalation in the ongoing investigation into Hybe’s pre-IPO share transactions, which have drawn scrutiny over potential conflicts of interest and disclosure failures during the company’s transition to public ownership.
