Prosecutors reject second police request to raid HYBE in Bang Si-hyuk market violation probe

Prosecutors have rejected a police request for a search warrant to raid K-pop agency HYBE’s headquarters over allegations that Chairman Bang Si-hyuk misled former shareholders.

The Seoul Southern District Prosecutors' Office recently denied the request, marking the second time prosecutors have turned down a warrant filed by the Seoul Metropolitan Police Agency in relation to Bang’s alleged violation of market laws, according to a report by the Korea Economic Daily on Sunday.

The first request, submitted on April 30, was rejected, prompting police to file again after further investigation. Following the second denial, police reportedly plan to submit a third request.

The Seoul Metropolitan Police Agency requested the warrant after accusing HYBE founder and chairman Bang of misleading shareholders and persuading them to sell their HYBE shares to a private equity firm founded by a personal acquaintance.

According to the Korea Economic Daily, the Financial Supervisory Service (FSS) has collected evidence that Bang misled shareholders in 2019 — prior to HYBE’s public listing on the Korea Exchange — convincing them to sell their shares to a firm that had promised him commission in return.

Bang allegedly received 400 billion won ($293 million) after HYBE went public as a result of the deal, but failed to disclose this in the company’s securities report.  

BY YOON SO-YEON [[email protected]]