Bang Si-hyuk Investigation Extended Amid IPO Controversy

The investigation into Bang Si-hyuk, Chairman of Hive, regarding alleged unfair profits during the company’s initial public offering (IPO) is ongoing, with police considering whether to apply for an arrest warrant more than four months after his last questioning. The case centers around accusations that Bang misled existing investors about Hive’s IPO plans, leading them to sell their shares to a special purpose company (SPC) linked to him.

Details of the Allegations

Bang Si-hyuk is accused of violating the Capital Markets Act, specifically fraudulent trading. The allegations state that before Hive’s listing in 2019, he informed existing investors that an IPO was not imminent, while simultaneously preparing for one. This alleged deception led investors to sell their shares to an SPC established by a private equity fund with ties to Hive executives. The alleged unfair profits total 190 billion won.

Lengthy Investigation and Delays

The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit has questioned Chairman Bang five times, with the most recent interrogation lasting over 15 hours. Despite the extensive investigation, police have not yet decided whether to seek an arrest warrant. The investigation began with a search and seizure warrant request in late 2024, but was initially rejected twice by the Seoul Southern District Prosecutors’ Office due to a concurrent investigation by the Financial Supervisory Service.

Concerns and Potential Obstacles

The delay in applying for an arrest warrant, despite the case’s significance, has raised questions. Some speculate that police are struggling to establish conclusive evidence of criminal wrongdoing, or fear a rejected warrant application could derail the investigation. The situation was further complicated by a dispute between the prosecution and the police over the investigation’s leadership.

Official Statements

A police official stated, “We are still investigating Chairman Bang. We are investigating according to procedures, so we will close the case at the appropriate time.”

Recent Developments

As of March 15, 2026, the investigation remains open. A decision on whether to seek an arrest warrant is pending. The case has drawn attention due to its potential impact on the capital market.