Three employees of subsidiaries of HYBE, the agency behind K-pop superstars BTS, have been charged with insider trading by South Korean prosecutors. This follows their alleged sale of HYBE shares just before BTS members announced their hiatus on June 14, 2022.
The announcement of BTS taking a break triggered a sharp 25% drop in HYBE’s share price upon market opening, resulting in a staggering loss of nearly 2 trillion won ($1.4 billion). Prosecutors assert that the accused employees had prior knowledge of the hiatus announcement, allowing them to avoid losses ranging from $24,000 to over $108,000.
Speculation around BTS’ hiatus initially centered on the possibility of members fulfilling South Korea’s mandatory military service, which all able-bodied men must complete by age 28 due to the country’s ongoing conflict with North Korea. Recently, the band’s oldest member, Jin, completed his service, while the remaining six members are still serving, with expectations for a full reunion by June 2025.
The legal actions against these HYBE employees highlight the challenges of insider trading in the high-stakes world of K-pop, where market movements can be heavily influenced by the slightest news regarding its global icons.
Fans of BTS, who remain eagerly anticipating the group’s eventual reunion, are hoping that Jin’s return marks the beginning of the end of their hiatus.
