Photo: HYBE

 

[Alpha Biz= Reporter Kim Sangjin] The first trial for former and current HYBE employees accused of insider trading has commenced. The employees allegedly sold their shares before the public announcement of BTS member Jin's (real name Kim Seok-jin) enlistment, which would halt the group's full activities.

On October 22, at the Seoul Southern District Court, presiding Judge Kim Sang-yeon held the first hearing for three individuals: former HYBE employees A and B, and current affiliate employee C, who are facing charges of violating the Capital Markets Act.

It was revealed that in May 2022, while still employed, they continuously inquired about the timing of Jin's enlistment and the subsequent halt in activities from the person responsible for creating the announcement video. After confirming the information, they sold their HYBE shares. Following the official announcement of the activity halt on June 14, the company's stock price plummeted by 24.87% the next day.

The defendants, through their lawyer, denied all charges against them. The lawyer stated, "While we were aware of Jin's enlistment, we did not know the timing of the announcement regarding the halt of full group activities." They also claimed, "We were not aware that the enlistment itself constituted undisclosed material information."

The shares they owned and sold included approximately 33 million won (500 shares) for A, about 45 million won (1,000 shares) for B, and around 153 million won (2,300 shares) for current employee C.

 

 

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