SEOUL, July 22 -- Police have requested a search warrant for HYBE chairman Bang Si-hyuk in connection with alleged fraudulent trading under the Capital Markets Act, it was reported yesterday.

The warrant application was submitted on July 17 by the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, targeting both Bang and HYBE's headquarters in Yongsan-gu, according to a Chosun Biz report.

Bang is suspected of misleading existing investors, including venture capitalists, about delays in HYBE's IPO plans before its 2019 listing.

He also allegedly facilitated the sale of HYBE executive shares to a special purpose company created by a private equity fund they had set up.

"The prosecution is reportedly reviewing w...