prosecution

Prosecutors said Friday they have rejected a police request for an arrest warrant for Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, who is accused of unfair stock trading, citing insufficient evidence.

The Seoul Southern District Prosecutors’ Office sent back to the police the arrest warrant request filed against Bang earlier this week on charges of fraudulent unfair trading under the Capital Markets Act.

The chief was suspected of deceiving investors in 2019 into selling their shares in Hybe before the company held an initial public offering (IPO), through which he allegedly pocketed about 260 billion won (US$175.28 million) in illegal profits.

“At this stage, there is insufficient evidence to justify the necessity of detention, and we have therefore requested a supplementary investigation,” the prosecution said.

The act prohibits obtaining financial gains through false statements or by using deceptive schemes in connection with financial investment products, such as unlisted shares. Violations involving profits exceeding 5 billion won are punishable by life imprisonment or a minimum of five years behind bars.

Bang has denied the allegation, saying the IPO had followed the law and regulations.

Police first received a tip-off on the allegations in late 2024 and raided the Korea Exchange and Hybe’s headquarters the following year as part of the probe. Bang was banned in August from leaving the country, leading to various restrictions on his activities.

The U.S. Embassy in Seoul recently sent a letter to the police agency asking that it allow him to travel to the United States to take part in K-pop supergroup BTS‘ world tour.

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The Cabinet on Tuesday approved two prosecution reform bills that would dismantle the current prosecution service later this year to separate its exclusive power to both initiate criminal probes and indict suspects.

When promulgated, it would mark a sweeping overhaul of the nation’s prosecution system. Under the new laws, the prosecution office will be shut down in October, 78 years after its establishment in 1948, and two new agencies will exercise indictment and investigate roles, respectively.

The bills on establishing the so-called serious crimes investigation agency and the indictment agency, pushed by the ruling Democratic Party (DP), were passed at the National Assembly last week in a plenary session boycotted by the main opposition People Power Party (PPP).

Under the laws, the new indictment agency will handle only indictments, while investigative powers will be transferred to the newly established serious crimes investigation agency.

The new investigative body will be established under the Ministry of the Interior and Safety and will be responsible for probing six major crimes, including corruption, economic offenses, defense industry-related crimes and drug offenses.

The government has been seeking to separate the prosecution service’s authority over both indictment and investigation amid longstanding criticism that the prosecution has abused its exclusive powers by carrying out politically motivated investigations.

The DP has argued that the reform is needed to curb potential political abuse of prosecutorial power, while the PPP has warned it could weaken checks on investigators and increase the risk of political influence.

The two new agencies are set to be established after the abolition of the prosecution office.

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MIAMI — Voting technology firm Smartmatic is seeking to dismiss a criminal indictment for money laundering, blaming President Trump and his allies for seeking its prosecution as part of a “campaign of retribution” against those they blame for his 2020 election loss.

Smartmatic’s parent company, UK-based SGO Corporation, was added to a criminal indictment last fall previously charging several executives with paying $1 million in bribes to election officials in the Philippines.

In a motion to dismiss the indictment filed Tuesday, attorneys for Smartmatic said the company had been cooperating with the Justice Department since it first learned of its investigation in 2021, including by producing millions of pages of documents and making presentations to federal agents. A trial date for the executives, including co-founder Roger Pinate, had been set and the company believed that it was in the clear.

But when Trump returned to the White House, the Justice Department reversed course and decided to press charges against Smartmatic. Attorneys for the company said the decision was prompted by Trump’s demands to prosecute his perceived enemies and his “mantra” that Smartmatic helped rig the 2020 U.S. presidential election won by Joe Biden — allegations that are at the heart of a $2.7-billion lawsuit filed by Smartmatic against the president’s allies in the media.

“The prosecution of SGO furthers their collective false narrative that President Trump did not actually lose the 2020 election,” Smartmatic said in the filing in Miami federal court.

The White House did not immediately respond to a request for comment.

Attorneys likened the prosecution to the Justice Department’s targeting of Kilmar Armando Ábrego García, a Salvadoran migrant who was criminally charged for conduct years earlier after he successfully sued the Trump administration over its decision to deport him.

In the years since the election, the filing states, “Smartmatic USA has exercised its right to hold those individuals and entities legally accountable for their deluge of defamatory statements and the attendant damage inflicts on its business, putting it squarely in the crosshairs for retribution.”

The criminal case against Smartmatic and its employees stems from payments, between 2015 and 2018, that were allegedly made to obtain a contract with the Philippine government to help run that country’s 2016 presidential election. Pinate, who no longer works for Smartmatic but remains a shareholder, has pleaded not guilty.

As part of the criminal case, prosecutors in August sought the court’s permission to introduce evidence they argue shows that revenue from a $300-million contract with Los Angeles County to help modernize its voting systems was diverted to a “ slush fund” controlled by Pinate through the use of overseas shell companies, fake invoices and other means.

They also accused Pinate of secretly bribing Venezuela’s longtime election chief by giving her a luxury home with a pool in Caracas. Prosecutors say the home was transferred to the election chief in an attempt to repair relations following Smartmatic’s abrupt exit from Venezuela in 2017 when it accused then-President Nicolas Maduro ’s government of manipulating tallied results in elections for a rubber-stamping constituent assembly.

Smartmatic was founded more than two decades ago by a group of Venezuelans who found early success running elections while the late Hugo Chavez, a devotee of electronic voting, was in power. The company later expanded globally, providing voting machines and other technology to help carry out elections in 25 countries, from Argentina to Zambia.

But Smartmatic has said its business tanked after Fox News gave Trump’s lawyers a platform to paint the company as part of a conspiracy to steal the 2020 election.

Fox said it was legitimately reporting on newsworthy events but eventually aired a piece refuting the allegations after Smartmatic’s lawyers complained. Nonetheless, it has aggressively defended itself against the defamation lawsuit in New York — arguing that the company was facing imminent collapse over its own internal misconduct, not due to any negative coverage.

Goodman writes for the Associated Press.