HYBE label employees sentenced for insider trading ahead of BTS hiatus announcement
Several current and former employees of HYBE-affiliated labels have received suspended prison sentences for insider trading based on advance knowledge of BTS’s group activity suspension due to military enlistment.
On July 22 KST, the Seoul Southern District Court’s Criminal Division 13 (Chief Judge Kim Sang Yeon) sentenced a Source Music employee, Mr. Kim (37), to 10 months in prison, suspended for two years, along with a fine of 231 million KRW (approx. $167,000 USD).
Former BigHit Music employee Mr. Lee (33) received 6 months in prison, suspended for two years, and a fine of 51 million KRW, while former Belift Lab employee Mr. Kim (41) was also sentenced to 6 months suspended and fined 65 million KRW.
The court also ordered the confiscation of illegally avoided losses, as the individuals sold HYBE shares using undisclosed material information before it became public.
The employees were charged with selling off their HYBE stock holdings prior to the June 14, 2022 video announcement, in which BTS revealed their temporary group hiatus due to members’ mandatory military enlistment, beginning with Jin.
Following the announcement, HYBE’s stock price plummeted 24.78%, marking one of the company’s steepest single-day declines.
The court stated,
“In the entertainment industry, an artist’s group activity directly impacts company revenue. The suspension of activities is highly sensitive and material information.”
“This crime gravely undermines the fairness of capital markets and deserves strong public condemnation.”
SEE ALSO: BTS rumored to have recorded an unreleased Michael Jackson song for his tribute album
SHARE
