This photo shows the headquarters of Hybe, the Korean entertainment agency behind supergroup BTS, in Seoul on Feb. 10, 2023. (Yonhap)
SEOUL, June 1 (Korea Bizwire) — Several employees at Hybe, the K-pop company behind the boy group BTS, were found to have sold their company shares last year after learning confidential information about the septet’s suspension from performing as a group, South Korea’s financial regulator said Wednesday.
The Financial Supervisory Service (FSS) announced that, following an investigation requested by the Seoul Southern District Prosecutors Office, three Hybe employees have been accused of violating the Financial Investment Services and Capital Markets Act and have been referred to the prosecution.
These employees sold their company shares before the official announcement of BTS’ pause in their group activities, having obtained information regarding the suspension.
On June 16 last year, a day after BTS’ sudden announcement, Hybe’s shares plummeted by nearly 25 percent.
Based on the closing price on May 15, the three employees managed to avoid losses amounting to 230 million won (US$173,910).
The FSS highlighted that Hybe chose to announce BTS’ suspension of group activities through a YouTube video, rather than issuing an official statement, which further contributed to the confusion among investors.
“The primary artists and their activities are integral to the management of a listed entertainment company and can significantly impact company share prices,” the FSS said.
H. M. Kang (hmkang@koreabizwire.com)
