The National Investigation Headquarters has denied allegations of a “nerve war” between the police and prosecutors regarding HYBE Chairman Bang Si-hyuk.
During a regular press conference on the morning of the 11th in Seodaemun-gu, Seoul, Park Seong-ju, head of the National Investigation Headquarters, stated that regarding the reconsideration of the arrest warrant for Bang Si-hyuk, he would “judge after comprehensively reviewing the supplementary investigation requirements” from the prosecution.
Addressing suggestions that the police’s arrest warrant for Bang Si-hyuk being rejected twice indicates a power struggle between the prosecution and police, he clarified, “I have never cared about that, so it is hard to agree. While it is difficult to specify the details of the supplementary investigation request, we are coordinating well with the prosecution.”
Bang Si-hyuk is accused of deceiving existing HYBE investors in 2019 by claiming there were no plans for listing, and inducing them to sell their shares to a special purpose vehicle (SPC) established by a private equity fund he was related to. There are also allegations that after HYBE’s listing, the private equity fund sold its shares, and Bang Si-hyuk pocketed approximately 190 billion won, which is about 30% of the sale profits, according to a pre-signed shareholders’ agreement.
Bang Si-hyuk’s side maintains that they did not deceive investors but acted upon request, and that the profit distribution was a condition first proposed by the investors.
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit applied for a travel ban and an arrest warrant for Bang Si-hyuk on charges of fraudulent unfair trading, but the prosecution rejected the warrant, citing that the explanation of the criminal charges was somewhat insufficient.
