South Korean entertainment company 'HYBE' has been embroiled in multiple controversies since last year, with reports emerging that employees were involved in insider trading. It was revealed that they had prior knowledge of 'BTS' (Bangtan Sonyeondan/Bulletproof Boy Scouts) activity plans, using this information to profit from stock trades. They were prosecuted for violating the Capital Markets Act, and the three former employees involved have now been sentenced to suspended prison terms in the first trial.
According to Korean media reports, the three involved were former 'Source Music' employee Kim, former 'BigHit Music' employee Lee, and former 'BELIFT LAB' employee Kim. In 2022, they obtained inside information about BTS member Jin’s enlistment and the group’s upcoming hiatus, leading them to sell a total of about 230 million won (approximately 700,000 Malaysian ringgit) worth of company shares, successfully avoiding potential financial losses. As a result, prosecutors charged them with violations of the Capital Markets Act.
On the 18th, the Seoul Southern District Court noted in its ruling that as 'HYBE’s' core artists, any suspension of BTS's activities would inevitably affect the company’s revenue—making this a key piece of information with significant impact on investors. 'This act severely undermined the public trust in the capital market and constitutes a major crime deserving of harsh societal condemnation.' The three individuals were each sentenced to 6 to 10 months in prison, suspended for 2 years, as well as a total fine of 350 million won (about 1.07 million Malaysian ringgit).
According to Korean media reports, the three involved were former 'Source Music' employee Kim, former 'BigHit Music' employee Lee, and former 'BELIFT LAB' employee Kim. In 2022, they obtained inside information about BTS member Jin’s enlistment and the group’s upcoming hiatus, leading them to sell a total of about 230 million won (approximately 700,000 Malaysian ringgit) worth of company shares, successfully avoiding potential financial losses. As a result, prosecutors charged them with violations of the Capital Markets Act.
On the 18th, the Seoul Southern District Court noted in its ruling that as 'HYBE’s' core artists, any suspension of BTS's activities would inevitably affect the company’s revenue—making this a key piece of information with significant impact on investors. 'This act severely undermined the public trust in the capital market and constitutes a major crime deserving of harsh societal condemnation.' The three individuals were each sentenced to 6 to 10 months in prison, suspended for 2 years, as well as a total fine of 350 million won (about 1.07 million Malaysian ringgit).