HYBE Employees Who Sold Stocks After Learning In Advance About BTS's Hiatus Deny Charges

Several employees from HYBE’s affiliates, accused of insider trading related to BTS’s military enlistment and activity break, have denied any wrongdoing during their first court appearance.

The case, which has attracted significant attention due to BTS’s global influence, centers around claims that these employees sold company shares before the announcement of BTS’s hiatus and military enlistment, avoiding major financial losses.

The Seoul Southern District Court’s 13th Criminal Division, overseen by Judge Kim Sang Yeon, held the initial trial on October 22. Three individuals, two former HYBE and affiliate employees, identified as A and B, along with a current affiliate employee, C, are being charged under the Capital Markets Act.

Defense attorneys for the accused argued that while the employees knew about BTS Jin’s impending military enlistment, they were unaware of any specific plans for the group’s break from activities or the timing of the official announcement. They also claimed that the employees didn’t realize the enlistment itself could be considered crucial unpublished information under the law.

The prosecution, however, alleged that between late May and early June of 2022, the employees became aware that BTS would announce their hiatus and, acting on this knowledge, sold their shares in HYBE just before the public statement was made. As a result, they are accused of avoiding losses amounting to roughly ₩233 million KRW (about $169,000 USD).

Investigators have revealed that the employees gained access to this information through their roles in HYBE’s Visual Creative and protocol departments, which manage various aspects of artist appearances and schedules. The next hearing in the case is scheduled for November 26.