BTS military information used in insider trading; multiple HYBE staffers sentenced to prison

Indian Express

5 days ago

On July 22, just hours after the Seoul Metropolitan Police Agency's Cyber Investigation Unit confirmed the indictment of a few airline staffers for leaking BTS members' flight details, three individuals linked to HYBE were busted for insider trading. Months before the official military enlistment announcement, whispers about the band taking a hiatus had already triggered a panic. HYBE's stock took a hit as investors feared the K-pop sensation wouldn't return as OT7, sparking outrage across social media. Now it turns out some insiders with access to confidential information sold their HYBE shares before the company went public with the news.
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On June 14, 2022, BTS posted a video announcing their hiatus because of military service, starting with Jin. The very next day, HYBE's stock price crashed nearly 25%. Turns out, a few employees had already sold their shares before the crash, knowing what was coming and further fueling disbandment rumours.
According to Korea JoongAng Daily, the Seoul Southern District Court on Tuesday sentenced a 37-year-old HYBE employee (surname Kim), who worked at subsidiary SOURCE Music, to 10 months in prison, suspended for two years, with a ₩231 million ($167K) fine. Another was a former BigHit Music staffer (33, surname Lee), handed six months suspended and fined ₩51 million ($37K). A third, from Belift Lab (41, also Kim), got the same sentence and a ₩65 million (~$47K) fine. The defendants saved around ₩230 million in losses. The court further ordered them to pay back the exact amount they earned via this illegal act. 'In an entertainment company, an artist's activities have a significant impact on revenue, so whether they continue or suspend activities is a highly sensitive matter,' the court ruling said. 'This offence constitutes a serious crime that undermines the fairness of the capital market and warrants strong social condemnation.'
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In a totally separate case but involving the same breach of privacy, a foreign airline worker (called Mr. A) was caught selling BTS's private flight information. This information not only involved just the K-pop stars' info but also another top Korean celebrities. According to the reports, Mr. A used his access as an airline employee to extract confidential flight details, including boarding time, destination, and others. He then sold those to brokers for cash, tens of millions of won. Further, these brokers spread it on encrypted apps, group chats, DMs, and sold it to sasaengs (obsessive fans) who are often caught stalking and forcefully trying to enter celebs' personal space. The three suspects were sent to the Seoul Central District Prosecutors' Office on charges of violating the Information and Communications Network Act and other related offences, according to Allkpop.
The matter turned dangerous as some fans began buying seats on the same flights as idols. Others, with a history of tampering, messed with seat bookings, meal orders without consent, or even cancelled entire flights by tweaking reservations or seat preferences. Not only did this meddle with idol schedules, but it also put everyone's safety at risk. Once the situation spiralled with repeated offences, HYBE, BTS's label, formed a task force to trace the leaks. Their staff dug into chat logs, money trails, and account details and handed everything to the police. That helped speed up the investigation, leading to Mr. A's arrest in February 2025, followed by two more in March. All three are now being prosecuted.