Could Bang Si-hyuk be arrested? "190 billion won in illicit gains" vs "No risk of flight" [Star Issue]

*This content was translated by AI.

A practicing lawyer has shared his thoughts on whether an arrest warrant will be issued regarding HYBE Bang Si-hyeok (Chairman) (방시혁 의장)'s alleged fraudulent transactions.

On the 22nd, lawyer Moon Yu-jin of PanSim Law Firm addressed the matter of an arrest warrant application for Bang Si-hyeok (Chairman) via his YouTube channel.

First, lawyer Moon Yu-jin stated regarding the possibility of Bang Si-hyeok (Chairman)'s arrest, "The first reason an arrest warrant could be issued is the seriousness of the crime. The amount is too large. The most painful part is the figure of 190 billion won." He added, "Violations of the Capital Markets Act are crimes that shake the foundation of the market economy, so courts view them very strictly. Even if the illicit gain exceeds 5 billion won, a minimum prison sentence of five years is mandated. If 190 billion won is recognized as guilty, a heavy sentence is inevitable. The heavier the crime and the higher the expected sentence, the stronger the judge's sense of necessity for arrest."

He continued, "The second reason is the concern of evidence destruction. Bang Si-hyeok (Chairman) is the top decision-maker of the massive empire known as HYBE. If investigated and tried while not in custody, there is a possibility that he could use his position to damage internal company documents or pressure employees and staff related to the case to provide favorable testimony. The police are expected to strongly appeal this point to the prosecutor and the judge."

However, lawyer Moon Yu-jin noted, "The defense team for Bang Si-hyeok (Chairman) will not make it easy." He explained, "A strong reason for the warrant to be rejected is the absence of flight risk. His face is known worldwide, so there is no need to hide, nor can he flee the country. An interesting point is that the U.S. Embassy in Korea requested cooperation for Bang Si-hyeok (Chairman) to depart for a U.S. event. Ironically, this official letter proves that Bang Si-hyeok (Chairman) is a person whose status as someone who must conduct global business is guaranteed."

He further stated, "The second point is the prolonged investigation. The police have not yet exhausted all leads. The police began their internal investigation a year and four months ago. The search and seizure at HYBE and the Korea Exchange were completed last summer. Summonses were issued no fewer than five times." He argued, "From the perspective of the prosecutor and the judge, they might think, 'The police have been investigating for over a year and have gathered all the evidence; what evidence could there possibly be left to destroy now?' The fact that an arrest warrant was applied for five months after the last summons also serves as evidence that the police's investigative momentum has waned or that there is significant room for legal dispute."

Meanwhile, Bang Si-hyeok (Chairman) was reported to the authorities in July last year along with former HYBE executives on suspicion of violating the Capital Markets Act. Bang Si-hyeok (Chairman) is accused of deceiving existing investors in 2019, before HYBE's listing, that there was no initial public offering (IPO) plan, and then having HYBE shares sold to a special purpose corporation (SPC) established by a private equity fund (PEF) created by former HYBE executives.

Additionally, Bang Si-hyeok (Chairman) is under suspicion of having deceived existing shareholders by signing a shareholder agreement with the PEF side, whereby he received approximately 30% of the PEF's sales proceeds after the IPO. Most of the existing investors were institutional investors, and it is known that the National Pension Service was included in their investment funds. Based on this, it is reported that Bang Si-hyeok (Chairman) secured 120 billion won, and when combined with funds raised from other investors, the total exceeds 190 billion won.

Subsequently, the police applied for an arrest warrant for Bang Si-hyeok (Chairman) on the 21st. The police issued a travel ban on Bang Si-hyeok (Chairman) in August 2025 and conducted a total of five investigations.

The side of Bang Si-hyeok (Chairman) maintains that they complied with relevant laws and regulations at the time of the company's listing and that there are no legal issues. Currently, the related investigation has completed its legal review.

Amidst this, it is reported that the U.S. Embassy in Korea recently sent a letter to Acting National Police Agency Chief Yoo Jae-sung requesting cooperation for Bang Si-hyeok (Chairman) and other senior HYBE executives to visit the United States. The reasons for the visit reportedly include attending the U.S. 250th Independence Day celebration scheduled for July 4 and supporting BTS's U.S. concerts as part of their world tour.

In response, the police stated regarding the U.S. Embassy in Korea's request to lift the travel ban on Bang Si-hyeok (Chairman), "We have not received any such request at the Seoul Metropolitan Police Agency. If a request comes, we will review its validity and act according to the law and principles." They added, "The investigation is almost complete. We are in the legal review phase and expect to conclude it within a short time."

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*This content was translated by AI.