A minimum of three HYBE staff face an investigation for insider buying and selling associated to BTS’ hiatus because of members’ necessary army service.
Three HYBE staff are dealing with costs associated to insider buying and selling, monetary authorities mentioned Wednesday. The Monetary Supervisory Service (FSS) alleges that a number of HYBE staff offered their shares of firm inventory after studying earlier than the general public that standard Ok-pop group BTS could be taking a break.
The announcement of the band’s hiatus reached the general public on June 14, 2022, and the corporate’s inventory sank practically 25% the next day — though it had been on a downward spiral the three buying and selling days prior. HYBE shares plunged 11% on June 13 for no obvious purpose, however BTS’ recorded the announcement video a number of days earlier than its launch.
Monetary authorities identified that HYBE’s asserting the group’s hiatus solely by way of movies posted to social media made it tough for buyers to make knowledgeable funding choices. Regulators launched an investigation amid rising suspicion that the BTS information might have leaked upfront.
The accused staff are estimated to have made round $173,600 by way of the commerce by unloading the inventory forward of the media announcement. FSS urged leisure businesses listed on the inventory market to “set up a system during which info is disclosed to the buyers brazenly, in a correct method, and strengthen inner management so its staff can’t make the most of (insider) info.”
BTS formally introduced final 12 months that it might take a break from group actions in a video uploaded to the band’s YouTube channel. On the time, the group’s members mentioned they determined to take a break to strengthen particular person members’ solo actions.
Nonetheless, market consultants and followers broadly speculated the underlying purpose was some band members’ imminent army duties. Jin started his army service in December, whereas J-Hope began this April.
In the meantime, BTS’ hiatus has proved profitable for the solo careers of members who’ve but to start their necessary army service. Member Jimin grew to become the primary South Korean solo act to succeed in No. 1 on the Billboard Sizzling 100 in April.