Bang Si Hyuk Investigated by Police for Alleged Violations of HYBE's Capital Market Law

Kapanlagi.com - South Korean police are conducting a legal review regarding the alleged violations of the Capital Market Law by HYBE's chairman, Bang Si Hyuk. Amid increasing public speculation, law enforcement is considering filing an arrest warrant against the key figure behind BTS's success.

During a routine press conference on October 20, 2025, a representative from the Seoul Metropolitan Police Agency's Major Crime Investigation Unit stated, "As reported, additional examinations have been conducted, and we are deeply analyzing the materials and testimonies collected," they added, "We are also conducting a legal review." However, there has been no significant progress since the previous two examinations of Bang Si Hyuk.

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1. Bang Si Hyuk Allegedly Defrauded HYBE Investors by Denying IPO Plans and Secretly Selling Shares

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Bang Si Hyuk is under investigation for allegedly defrauding HYBE investors in 2019 by stating that the company had no plans for an initial public offering (IPO). However, at the same time, he allegedly sold shares secretly to private equity funds, which is considered a violation of capital market laws.

After HYBE officially entered the stock market, the fund sold its shares and made a profit of around 190 billion won (approximately 132.6 million USD). Based on the initial agreement, part of the profits was allegedly shared with Bang Si Hyuk. Lawyer Jung Tae Won and the law firm LKN & Partners explained that the core of this case lies in the alleged violation of Article 178 of the Capital Market Act, which prohibits any form of fraudulent and unfair trading.

2. The Police Have Raided HYBE's Office and Banned Bang Si Hyuk from Traveling Abroad During the Ongoing Investigation

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The investigation into Bang Si Hyuk has been underway since the end of last year. The police conducted a search at HYBE's headquarters and the Korea Exchange in the Yeoungdeungpo District of Seoul to look for evidence of stock transactions and internal communications during the IPO process.

Bang Si Hyuk has been questioned by the police twice in September. After returning from a business trip to the United States on August 11, 2025, he was banned from traveling abroad. Meanwhile, HYBE stated in its official statement that the company has complied with all applicable regulations and laws during the stock listing process and will fully cooperate with the police investigation.

3. The Investigation into Bang Si Hyuk Enters the Legal Review Stage

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According to lawyer Jung Tae Won, the police statement regarding the legal review is not just an examination of the law, but also an effort to determine whether the evidence and testimonies collected indicate the occurrence of a crime. He assessed that the existing evidence is still ambiguous, so the investigation is currently in a stage of in-depth evaluation.

Jung emphasized that the main factor that will determine the direction of this case is whether there are elements of fraud and intent to mislead investors. He explained, "The police can issue an arrest warrant to secure the suspect, but the defense can also argue that there is no risk of flight or evidence tampering, so the investigation can proceed without detention".

4. The Case of Bang Si Hyuk Becomes a Major Test for the Integrity of South Korea's Capital Market and Investor Trust

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Lawyer Noh Jong Un and Jonjae Law Firm consider that fraudulent trading under the Capital Market Law is often referred to as "a rebellion against the capital market" because it can shake the foundations of public trust in the financial system. He added that the term "legal review" used by the police indicates serious considerations to determine the steps for arrest and the strength of legal evidence.

With increasing public attention, the case involving HYBE Chairman Bang Si Hyuk is seen as an important benchmark for transparency and accountability of large companies in South Korea, especially in the IPO process. The results of this investigation are expected to have a significant impact on investor trust and the stability of the capital market in Korea in the future.

(kpl/awk)