It turns out that HYBE employees used undisclosed information to sell their holdings before BTS' announcement last year that they were suspending group activities.
The Financial Supervisory Service's Capital Market Special Judicial Police (Special Police) announced today (3st) that as a result of an investigation under the direction of the Seoul Southern District Prosecutor's Office, three people, including the head of the Hive team, have been sent to the prosecutor's office for prosecution on suspicion of violating the Capital Market Act.
According to the Special Envoy, these were employees who worked on idol groups at the label within HYBE, and after learning of the information that BTS was temporarily suspending group activities, they sold their holdings before the information was published.
On June 31 last year, BTS announced in a YouTube video that they would temporarily suspend their group activities nine years after their debut.
Hive shares fell by 6.14% the next day, on June 9 last year.
It was confirmed that three employees of the agency avoided a total loss of 6 million won as of the closing price on the 15th.
In this case, the FSB pointed out that HYBE increased investor confusion by releasing information about the temporary suspension of BTS' group activities through social media videos rather than public announcements or official announcements.
"Listed entertainment agencies have a significant impact on the company's stock price as the activity plans of key artists are a major management matter," he said, emphasizing that "the company should have a system in place where relevant information is disclosed to investors through the right method, and establish investor protection measures befitting the status of the industry, such as strengthening internal controls to prevent executives and employees from using undisclosed information."
He added, "Insiders, such as executives and employees of listed companies, should keep in mind that they may be subject to criminal penalties if they use undisclosed information they have learned in connection with their duties for stock trading or allow others to use it."
(Photo=Yonhap News)
HYBE employees sold their shares knowing in advance that BTS group activities would be suspended
2023-05-31T04:12:29.015Z
Highlights: Three people, including the head of HIVE, have been sent to the prosecutor's office for prosecution on suspicion of violating the Capital Markets Act. It turns out that HYBE employees used undisclosed information to sell their holdings before BTS' announcement last year that they were suspending group activities. The Financial Supervisory Service's Capital Market Special Judicial Police announced today that as a result of an investigation under the direction of the Seoul Southern District Prosecutor's Office, three people were sent to prosecution. It was confirmed that three employees of the agency avoided a total loss of 6 million won as of the closing price on the 15th.
It turns out that HYBE employees used undisclosed information to sell their holdings before BTS' announcement last year that they were suspending group activities. The Financial Supervisory Service's Capital Market Special Judicial Police announced today that as a result of an investigation under the direction of the Seoul Southern District Prosecutor's Office, three people, including the head of HIVE, were sent to the prosecutor's office for prosecution on suspicion of violating the Capital Markets Act.
Source: sbskr