Controversy Surrounds Arrest Warrant for HYBE Chairman Bang Si-hyuk Amid Capital Market Law Violation Allegations

The recent arrest warrant application for HYBE Chairman Bang Si-hyuk on charges of violating the Capital Market Act has sparked criticism from legal circles, who argue that the warrant is excessive. The decision to issue an arrest warrant should be based on concerns of evidence destruction and flight risk, which are difficult to substantiate at this time. The case itself remains contentious, with a fierce legal battle anticipated in court.

On the 21st, the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit announced that they had applied for an arrest warrant for Chairman Bang on charges of fraudulent trading under the Capital Market Act. This announcement came just a day after the U.S. Embassy in Korea requested the lifting of Bang's travel ban, citing BTS's U.S. tour support and participation in Independence Day events.

The legal community interprets the arrest warrant application as a de facto rejection of the U.S. Embassy's request by the police. HYBE has expressed strong regret over the application. On the 21st, Bang's legal team released a statement expressing disappointment, stating, "Despite cooperating with the investigation for an extended period, the arrest warrant application is regrettable," and pledged to "diligently engage in future legal proceedings to clarify the matter."

Under criminal procedure law, detention is possible only when there is a risk of evidence destruction or flight. Practically, the seriousness and substantiation of the case are also considered during the warrant review process. However, this incident occurred in 2019, and with the investigation dragging on, all necessary evidence has been secured by the authorities. Last June and July, the police conducted searches at the Korea Exchange and HYBE's Yongsan headquarters. The authorities and the defense are merely interpreting the evidence differently. A lawyer from a major law firm commented, "If evidence destruction was cited as a reason, it sounds like they failed to secure the evidence properly."

Citing flight risk also seems challenging. Since the investigation began last year, Bang has appeared for questioning five times between September and November as a suspect. The U.S. Embassy's request to lift the travel ban was for official purposes, such as attending the U.S. Independence Day event and supporting BTS's local tour. If Bang intended to flee, there would have been no reason for him to return in the first place.

The sudden arrest warrant application, seemingly in response to the U.S. Embassy's request, appears to be a strategic move by the investigative authorities. Attempting an arrest warrant rather than forwarding the case with a non-detention indictment opinion can garner more public attention. This is a tactic often used by investigative agencies to shape favorable public opinion.

Detaining a symbolic figure like Chairman Bang is also seen as an achievement for the investigators. A lawyer who previously served as a chief prosecutor explained, "Prosecutors used to consider it a badge of honor to detain major corporate leaders, and now it seems the police are competing for investigative achievements."

If Chairman Bang has committed any wrongdoing, it should be uncovered through the prosecution and court process and punished accordingly. The approach of detaining first and investigating later is reminiscent of the aggressive corporate investigations by prosecutors in the past. Focusing on calm legal proof while allowing corporate activities aligns with the national interest of spreading K-culture globally.

Reporter Ko Yoon-sang kys@tenasia.co.kr