'HYBE stock plunge from BTS enlistment'—Affiliate employees who sold shares with prior knowledge receive suspended prison sentences


 

Employees of HYBE's affiliates who sold shares after learning in advance about BTS' group activity suspension due to military enlistment have been sentenced to suspended prison terms in their first final.

On the 22nd, the Seoul Southern District Court's Criminal Agreement Division 13 (presiding judge Kim Sangyeon) sentenced Kim (37), a former Source Music employee, to 10 months in prison suspended for 2 years and fined ₩231 million (approx. $167,000) for violating the Capital Markets Act.

Lee (33), a former BigHit Music employee, received 6 months in prison suspended for 2 years and fine of ₩51 million (approx. $36,975), while Kim (41), a former Belift Lab employee, received 6 months in prison and suspended for 2 years and a fine of ₩65 million (approx. $47,125).

The court also ordered the confiscation of the financial gains they made by avoiding losses through stock sales using undisclosed insider information.

These former employees of HYBE's sub-labels were accused of selling all their HYBE shares after learning in advance that BTS would release a YouTube video on June 14, 2022, announcing a temporary suspension of group activities due to Jin's military enlistment. They avoided approximately ₩230 million (approx. $166,520) in losses.

HYBE's stock prices plunged 24.78% the day after the announcement.

The court stated, "In the entertainment industry, the activities of affiliated artists have a significant impact on company revenue, so any suspension is a sensitive matter. This offense seriously damages the integrity of the Capital Market and is subjected to strong public criticism."


Original article: Yonhap News



Comments

Post a Comment

Popular posts from this blog

ARMYs defend J-Hope after he was criticized for his recent "skinship" with the bride

Image
  Recently, the wedding of renowned fashion stylist and visual director Kim Youngjin, also known as Kim Venchy, has gone viral on social media, thanks to its star-studded guest list featuring none other than BTS and NCT. While NCT surprised attendees with a live performance to celebrate newlyweds, BTS leader RM took center stage as the official MC of the event, charming guests with his wit and presence. Joining RM at the wedding were fellow BTS members J-Hope and Suga, were seen laughing, chatting and fully enjoying the joyful atmosphere of the ceremony. With so many A-list stars coming together in one place to celebrate one love, fans couldn't help but call it a "dream wedding." They said, considering the status of stylist Kim and his wife in the industry, such a high-profile guest list comes as no surprise. Kim Venchy as long been one of South Korea's top fashion stylists and has served as BTS's main stylist for years. He's the creative mind behind many of t...
Read more

The Dark Side Of Fandom: Jin opens up about the pressure of solo stans

Image
May 19, 2025 On Thursday, May 15, Jin appeared on the variety show "Handsome Guys" as a special guest. The show revolves around exploring unique and local cultural spots in Korea while inviting a celebrity to join their travel itinerary. This was his third time appearing on the show alongside the other five hosts and this time, they invited him to join them at a Korean-style barbecue. As they sat around the table and chatted about various topics, one of the hosts asked the idol if there were any other members who would fit the concept for the show. He replied that Jungkook and V were good choices because: "For this role, Jungkook would fit best. He really eats well. And for this vibe, V would fit best." He also added that V and Jungkook have a strong bond as they often make fun of each other, which is another factor that could fit the concept of "Handsome Guys." Oh Sangwook then joked, "I'm 96. Anyway, anyone younger than me can just come on [the ...
Read more

Hobi Live Streaming Translation - 250218

Image
๐Ÿฟ️ : Did I eat mulhwae with Jin hyung? ๐Ÿฟ️ : what do you mean? ๐Ÿฟ️ : it's been a while since I did a live streaming. It feels different/new to me too ๐Ÿฟ️ : today is my birthday. At the same time, it's 10 days before my concert. Really. ๐Ÿฟ️ : I've been really so busy lately ๐Ÿฟ️ : I think there are a lot of people wondering "what Hobi do?" I've been working so hard and doing a lot of things. ๐Ÿฟ️ : yesterday also I spent my birthday on set. I received a lot of birthday wishes from many people. ๐Ÿฟ️ : *read comments* "Happy birthday" ๐Ÿฟ️ : thank you, ARMYs ๐Ÿฟ️ : it's my birthday so I prepared a birthday cake too *showing his cake* ๐Ÿฟ️ : hey look at the detail on the hat. What do you think it is? Take a guess. ๐Ÿฟ️ : it's so cute! It's a cute cake. ๐Ÿฟ️ : isn't it so cute? ๐Ÿฟ️: Look at the hat! That'a a point of interest ๐Ÿฟ️ : And so today is a very meaningful day. It's my birthday and it's also 10 days from my concert. ๐Ÿฟ️ : the...
Read more