Three staff at HYBE, the company behind Okay-pop megastars BTS, have been accused of insider buying and selling by South Korea’s monetary watchdog over share gross sales earlier than the group’s bombshell “hiatus” announcement.
In a YouTube video posted on June 14 final 12 months, BTS’ band members informed followers they had been taking a break from the supergroup to give attention to their solo careers, citing exhaustion and the pressures of their stratospheric success.
The firm’s share value fell almost 25 % when the market opened the day after the announcement, wiping almost 2 trillion received ($1.5 billion) off its worth.
Three HYBE staff, whose identities have been withheld, had prior data of the announcement and offered their shares earlier than it was made public, pocketing lots of of thousands and thousands of received illegally, the Financial Supervisory Service mentioned in an announcement Wednesday.
“We referred the three officials, one of whom is a team leader, to the prosecution with the opinion that they should be indicted,” the watchdog mentioned.
The watchdog additionally criticised HYBE for making the market-moving announcement in a YouTube video somewhat than an official assertion or regulatory submitting, which they mentioned had “aggravated investors’ confusion”.
Entertainment businesses ought to have a system the place necessary data for traders is made public “transparently and through a right channel”, it mentioned.
While BTS cited exhaustion as a purpose for its choice to droop group exercise, many analysts mentioned the hiatus was strategic, with South Korea’s necessary 18-month navy service looming for particular person band members.
All South Korean able-bodied males below the age of 30 should carry out round two years of navy service, primarily as a result of the nation stays technically at battle with nuclear-armed North Korea.
Two of the superstar septet’s members, Jin and J-Hope, enlisted within the military in December 2022 and April this 12 months respectively, with the remaining 5 anticipated to comply with within the years — or months — forward.
HYBE didn’t reply to an AFP request for remark.
Source: www.anews.com.tr
