Three former employees of labels under HYBE have been sentenced to suspended prison terms for insider trading related to BTS’s military enlistment.
On July 22, the Seoul Southern District Court found the individuals guilty of using non-public information to sell company stock before the announcement of BTS’s temporary group hiatus.
According to the court, the employees sold their HYBE shares just before the public learned that BTS would pause team activities due to member Jin’s enlistment in June 2022. Their actions reportedly helped them avoid losses totaling nearly 230 million won (~ $166,00). The day after the news broke, HYBE’s stock price sank by 24.78%.
The court said,
In the case of entertainment companies, the activities of their artists have a significant impact on revenue, so whether or not those activities are suspended is a sensitive matter. This offense is a serious crime that undermines the public nature of the capital market and is highly likely to be subject to public criticism.
The former SOURCE MUSIC staffer, Kim (37), was sentenced to 10 months in prison, suspended for two years, and fined 231 million won. Lee (33), a former BIGHIT MUSIC employee, received a six-month suspended sentence and a 51 million won fine. Kim (41), previously with BELIFT LAB, was handed the same suspended sentence and fined 65 million won. All were tried without detention.
In addition to the fines, the court ordered them to return the financial gains made from the illegal trades.
Meanwhile, all BTS members have wrapped up military service and are currently working on a group album. Their comeback is slated for spring 2026, followed by a grand world tour.
