HYBE Staff Caught In Insider Trading Scandal, Sold Shares Illegally Before BTS’ Hiatus Announcement

The staff was charged for profiting off of BTS military enlistment announcement.

BTS’ label and K-pop conglomerate HYBE has been under investigation recently for charges of insider trading and money laundering. Now, several employees of the label, both current and former, have been handed a suspended prison sentence. They have been prosecuted for insider trading stemming from advance knowledge of BTS’s group hiatus due to military enlistment. Read on to know more.

Staff Sentenced For Illegal Insider Trading Ahead Of BTS Hiatus

On July 22 Korean Standard Time, the Seoul Southern District Court’s Criminal Division 13 announced that Mr. Kim (37), an employee of Source Music, HYBE’s subsidiary label, was sentenced to 10 months in prison, suspended for two years, and fined 231 million KRW (approximately Rs. 1,43,86,742).

Two other staffers, Mr. Lee (33), a former BigHit Music employee, and Mr. Kim (41), formerly of Belift Lab, were each sentenced to six months in prison, also suspended for two years, and fined 51 million KRW (Rs. 31,75,965)and 65 million KRW (40,47,798) respectively. The court also ordered the recovery of profits earned or losses avoided from the staff’s illegal trades.

The staff member’s case revolves around their sale of HYBE shares prior to the public announcement of BTS’ hiatus due to military enlisment. On June 14, 2022, BTS announced their temporary group hiatus due to members’ mandatory military enrollment, beginning with Jin. Following the announcement, HYBE’s stock fell by almost 25%, one of the biggest declines in the company’s history.

The court emphasised the seriousness of the crime, stating, “In the entertainment industry, an artist’s group activity directly impacts company revenue. The suspension of activities is highly sensitive and material information.”

“This crime gravely undermines the fairness of capital markets and deserves strong public condemnation,” the ruling judge added.

Also Read: From Price To Facilities, All You Need To Know About BTS’ Luxury Homes!

Meanwhile, the Financial Supervisory Service (FSS) is reportedly continuing a fast-tracked investigation into HYBE’s leadership, particularly scrutinising transactions involving Chairman Bang Si Hyuk and private equity firms. HYBE previously denied any wrongdoing when the allegations first surfaced in late 2024.

Also Read: BTS’ Flight Information Sold Illegally Again, Airline Employee Charged

First Published: July 22, 2025 2:41 PM