THE AGENCY behind popular K-pop group BTS recently found itself in trouble after three of its employees were charged with alleged insider trading, prosecutors said on Thursday.
On June 14, 2022, BTS members announced that they are taking a break from the supergroup to concentrate on their individual endeavors. Many analysts believed that the break was strategic as the members had to undergo the mandatory South Korean 18-month military service.
Prosecutors said that three affiliates of the agency who had prior knowledge of the announcement sold their shares before the announcement was made public.
They reportedly avoided losing around $24,063 to $108,100.
Based on a statement sent to AFP news by Seoul Southern District Prosecutor’s Office, the employees had worked for BTS for 8-10 years since the group’s debut. As such, they were able to obtain material information that could “significantly impact investment decisions.”
The affiliates had worked in a team that involved producing BTS music videos, hair and clothing, as well as another protocol planning team.
It added that HYBE’s plans for the 2022 announcement was deemed to be “undisclosed material information,” as well as “confidential matter that only high-ranking officials and a few work-related personnel were aware of.”
The use of “undisclosed material information by corporate insiders” who exploit informational asymmetries to undermine the fair order of the stock market” will be “sternly cracked down on,” according to the prosecutor’s office.
