HYBE employees charged with insider trading over BTS hiatus

Three workers of associates of HYBE, the agency behind K-pop megastars BTS, have been charged with insider trading by South Korean prosecutors.

Insider Trading Allegations

Three employees from subsidiaries of HYBE, the agency behind K-pop superstars BTS, have been charged with insider trading by South Korean prosecutors.

They are accused of selling shares in the agency prior to the announcement that BTS members were taking a break on June 14, 2022.

Impact of the Announcement

The hiatus announcement had a significant impact on HYBE’s market value. When markets opened, HYBE shares plunged 25%, resulting in a loss of nearly 2 trillion won ($1.4 billion; £1.1 billion).

The prosecutors allege that the three employees acted with prior knowledge of this announcement, avoiding losses ranging from $24,000 to more than $108,000.

Also read: Einstein’s historic letter urging nuclear bombs to be auctioned

Speculations and Military Service

At the time of the hiatus announcement, there was widespread speculation about the reasons behind it.

Many analysts suggested that the break was related to South Korea’s mandatory 18-month military service, which all able-bodied men must complete by the age of 28. Given South Korea’s ongoing technical state of war with North Korea, this service is compulsory.

Military Service and BTS Members

Following the announcement, all BTS members were eventually drafted for military service. The oldest member, Jin, was discharged earlier this month after completing his service.

The remaining members – J-Hope, V, RM, Jimin, Jung Kook, and Suga – are still serving. The band is expected to reunite in June 2025.

Fan Anticipation

Fans of the globally popular boy band are eagerly anticipating BTS’s return. With Jin’s discharge, there is renewed hope among fans that it marks the beginning of BTS’s comeback from their hiatus.

This insider trading incident highlights the significant financial and emotional impact that BTS’s activities have on their agency, shareholders, and fans worldwide.