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BTS: Former HYBE employees face trial for selling company stocks ahead of group's 'hiatus' video
Former HYBE and affiliate employees face trial for misusing position and selling company stocks ahead of BTS' group 'hiatus' announcement video in 2022, causing significant loss to the company. Read on!
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Ex-HYBE employees face trial for selling company stocks before BTS' group 'hiatus' video release
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A catch-up on BTS' recent engagements
Former HYBE employees face trial for allegedly selling company stocks before BTS' 'hiatus' video announcement, avoiding losses of 230 million KRW. Accused of using insider knowledge from roles in BTS' creative team, they now face charges under the Capital Market Act in Seoul's Southern District.
Ex-HYBE employees face indictment for misusing positions and causing company losses
On June 27, the Seoul Southern District Prosecutor’s Office announced indictments against three former employees of HYBE Corporation and its affiliates, identified as A aged 32 years, B; a 35-year-old individual, and C (39). They stand accused of violating the Capital Markets Act by allegedly selling 3,800 shares of HYBE stocks ahead of a significant announcement by BTS, the globally renowned K-pop group under HYBE's management.
The charges stem from events on June 13, 2022, when BTS released a video on their official YouTube channel announcing their intention to enter a period of break from group activities and proceed with military enlistment. This announcement led to a drastic 24.89% drop in HYBE's stock price the following day, equating to approximately 230 million KRW in avoided losses for the accused.
These former employees, who held positions in BTS' Visual Creative and protocol teams, purportedly used their insider knowledge of the impending announcement to sell their shares before the public disclosure. The prosecution argues that they leveraged their close proximity to BTS and privileged access to sensitive information to benefit financially, a move deemed unlawful under securities regulations.
More details about BTS’ latest activities
Recently, BTS has been busy delighting fans with a series of memorable events and upcoming releases. On June 12, all members reunited to celebrate Jin's return from the military service, following which Jin celebrated the septet’s 11th debut anniversary with a heartwarming FESTA 2024 live event and a special free hug event, showcasing their bond with ARMY.
Meanwhile, as other members continue their military duties, BTS also continues to keep fans excited with upcoming projects. After J-Hope and RM’s solo projects, V is gearing up to release his anticipated photobook on August 6, while Jimin has announced his second solo album, MUSE, scheduled for release on July 19, promising more music and creativity to look forward to.
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