Outbyte PC Repair

HYBE Staff Reject Insider Trading Claims Linked to BTS Military Service and Hiatus in Initial Court Hearing

HYBE Staff Reject Insider Trading Claims Linked to BTS Military Service and Hiatus in Initial Court Hearing

On Tuesday, October 22, the initial court session took place for HYBE employees implicated in insider trading tied to BTS’s military enlistment. This hearing was conducted by the 13th Criminal Division of the Seoul Southern District Court, under the supervision of Judge Kim Sang-yeon.

As reported by the Korean news agency Newsis, three employees attended this court hearing facing charges under the Capital Market Act. They are accused of selling their company shares prior to the formal announcement of BTS’s military enlistment.

These employees allegedly received early notice regarding the impending military service of BTS members and reportedly sold their shares before the news became public, aiming to prevent significant financial losses.

The accused individuals have refuted the claims, with their legal representatives asserting that while the employees were aware of BTS’s enlistment plans, they did not anticipate a hiatus from group activities at the time the official announcement was made.

Furthermore, their attorneys contended that the employees were not informed that the enlistment information could be classified as crucial unpublished material according to legal standards.

Prosecution Charges HYBE Employees with Insider Trading for Preemptive Share Sales

During the court’s first session on October 22, three HYBE employees faced insider trading allegations. This situation unfolded as HYBE’s share value plummeted following the announcement of BTS’s hiatus, leading to internet speculation about whether these employees had exploited prior knowledge to manipulate share sales.

Despite the ongoing case, the accused have denied all charges. The prosecution argued that these employees gained knowledge of BTS’s enlistment from late May to early July 2022 and acted by liquidating their shares ahead of the official hiatus announcement, trying to evade financial losses estimated at around KRW 233 million.

Investigators purportedly found that these individuals acquired insider information about BTS’s military enlistment and hiatus due to their positions in HYBE’s visual creative and protocol departments, which are responsible for managing artist appearances and schedules.

The next court hearing is planned for November 26, where the trial will delves into the legality of the employees’ decision to sell shares based on confidential information.

Previously, in May 2023, the Financial Supervisory Service’s Capital Market Special Judicial Police had referred the three individuals for prosecution. Following this, in June 2024, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors’ Office decided to proceed with a trial without detaining the accused.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *