Police filed two arrest warrants, both rejected by prosecutors citing insufficient grounds; supplementary investigation drags on

Hybe Chairman Bang Si-hyuk answers reporters' questions upon arriving at the Seoul Metropolitan Police Agency's financial crimes unit last year. [Yonhap]
Hybe Chairman Bang Si-hyuk answers reporters' questions upon arriving at the Seoul Metropolitan Police Agency's financial crimes unit last year. [Yonhap]

By Kim Do-yoon, The Herald Business

More than a year after launching a full investigation, police have yet to reach a conclusion in the case against Hybe Chairman Bang Si-hyuk over alleged Capital Markets Act violations involving fraudulent trading. Attention is now focused on whether the supplementary investigation — ordered by prosecutors — will soon produce a result.

Park Seong-ju, head of the Korean National Police Agency's National Investigation Headquarters, said Monday at a regular press briefing at the agency's office in Seodaemun-gu, Seoul, that police are conducting supplementary investigation in response to prosecutors' request. "We plan to make a judgment on the direction of the investigation after comprehensively reviewing the results of the supplementary investigation and the prosecutors' requirements," he said.

Police filed arrest warrants for Bang on April 21 and April 30, but prosecutors rejected both. Prosecutors said the grounds for detention had not been sufficiently established and that further investigation was needed.

According to legal sources, police have been pursuing charges against Bang under the Capital Markets Act for fraudulent trading, while prosecutors believe the case should instead be charged as fraud under the Criminal Act — a fundamental difference in the legal theory being applied.

Bang is accused of telling existing investors in 2018 that Hybe had no plans to go public, while in practice pursuing a listing and allegedly reaping illicit gains of around 190 billion won (approximately $123 million).

Bang's representatives responded to the first arrest warrant filing on April 21, expressing regret that a warrant had been sought despite what they described as lengthy and cooperative participation in the investigation. "We will do our utmost to present our case through the legal process going forward," they said.


kido@heraldcorp.com