[비즈한국] With a large-scale reshuffle of prosecutors underway ahead of the transition to a Public Prosecution Service, the prosecutor in charge of the investigation into HYBE352820 has also been reassigned. Investigative authorities have been looking into HYBE Chairman Bang Si-hyuk and others since December 2024 for alleged fraudulent unfair trading (violation of the Capital Markets Act) during HYBE's initial public offering, but no conclusion has been reached yet. With the investigation being unusually delayed, the reassignment of the lead prosecutor is expected to further postpone a final decision.
On January 29, the Ministry of Justice carried out a large-scale prosecutor reshuffle. The stated purpose is to reorganize the prosecution structure ahead of the transition to a Public Prosecution Service in October. The scope of the reassignment involves 569 high-ranking prosecutors and 358 general prosecutors.
Consequently, the prosecutor in charge of investigating individuals including HYBE Chairman Bang Si-hyuk has also been reassigned. Choi Sang-hoon, Deputy Chief Prosecutor of the Joint Financial and Securities Crime Investigation Department at the Seoul Southern District Prosecutors' Office (dispatched to the Financial Services Commission), is moving to become the Chief of the Crime Proceeds Recovery Department at the Busan District Prosecutors' Office. Kim Jin-ho, Chief of the Joint Financial and Securities Crime Investigation Department at the Seoul Southern District Prosecutors' Office, has been transferred to serve as the Head of Anti-Corruption Division 1 at the Supreme Prosecutors' Office.
It is reported that the Financial Supervisory Service's Capital Market Special Judicial Police (Special Judicial Police) is conducting a separate investigation into HYBE, apart from the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit. With the investigation split into two tracks, it was Prosecutor Choi Sang-hoon who held the reins for both. Prosecutor Choi was directing the Special Judicial Police in the HYBE investigation. He was also responsible for cases referred by the police, such as warrant applications.
It was also Prosecutor Choi Sang-hoon who, at the request of the police last October, applied to the court for a forfeiture preservation order on 156.8 billion KRW worth of HYBE stock owned by Chairman Bang Si-hyuk (Related article: [Exclusive] HYBE Chairman Bang Si-hyuk's 156.8 Billion KRW in HYBE Stock 'Frozen' via Forfeiture Preservation). However, criticism regarding the fairness of the investigation arose when Chairman Bang Si-hyuk hired a former prosecutor as his attorney who had been Prosecutor Choi Sang-hoon's direct supervisor until August 2025.
With this reshuffle, the command line for Chairman Bang Si-hyuk's investigation team is being replaced, raising concerns about further delays. The fact that the police have been dragging out the investigation for over a year is also highly unusual. Initially, the prevailing view in the legal community was that, considering the timing of the personnel changes, the investigation would conclude within 2025.
The forfeiture preservation order regarding Chairman Bang Si-hyuk was issued last October, and the final summons for questioning took place last November. Since forfeiture preservation procedures usually precede an indictment, it was predicted that the prosecution would file charges soon, but it is known that no conclusion has been reached as of yet.
Although the Seoul Metropolitan Police Agency stated last December that the investigation was in its final stages, some speculate there may be disagreements between the Seoul Metropolitan Police Agency and the National Office of Investigation (NOI) due to the lack of a conclusion. On January 26, Seoul Metropolitan Police Agency Commissioner Park Jung-bo stated at a regular press conference, "It seems to be taking some time during the review process with the NOI."