Former employees of HYBE’s affiliate labels have received suspended sentences for insider trading related to BTS.
These former employees were found guilty in their first trial for selling HYBE shares after learning in advance about the group’s temporary hiatus due to its members’ upcoming military enlistments.
On July 22, the 13th Criminal Division of the Seoul Southern District Court, presided over by Judge Kim Sang Yeon, sentenced Mr. Kim (37), a former employee of Source Music, to 10 months in prison with a 2-year suspension, along with a fine of 231 million KRW (approximately €156,000).
Mr. Lee (33), a former employee of Big Hit Music, also tried without detention, received 6 months in prison with a 2-year suspension and a fine of 51 million KRW (about €34,500), while Mr. Kim (41), a former employee of Belift Lab, was sentenced to 6 months in prison with a 2-year suspension and fined 65 million KRW (around €44,000).
The court also ordered the confiscation of an amount equivalent to the losses they avoided by selling stock using undisclosed, material information.
These former employees of HYBE-affiliated labels were accused of selling all of their HYBE shares after learning in advance that BTS would be releasing a YouTube video on June 14, 2022, announcing the group’s temporary suspension of activities due to Jin’s military enlistment. By doing so, they avoided estimated losses of around 230 million KRW (approximately €155,000).
The day after the announcement, HYBE’s stock price plunged by 24.78%.
The court emphasized:
“In the entertainment industry, artists’ activities significantly impact company revenue. Whether or not those activities are continuing is highly sensitive information. This kind of crime severely damages the integrity of the capital market and is a serious offense, subject to strong social condemnation.”
Journaliste : Shawn
Source : Média coréen
