K-pop sensation BTS seemed to have landed two wins in the legal territory.
The first case involved a group of people illegally leaking private boarding details of celebrities along with BTS. In a fresh development, three suspects, including an international airline employee, have been referred to prosecution.
On the other hand, numerous current and former employees affiliated with BTS’ parent company HYBE’s sub-labels received suspended prison sentences and fine impositions for insider trading.
Having access to advance knowledge of the K-pop supergroup’s military enlistment schedule, a group of certain HYBE staff members sold off their company stocks to avoid losses, knowing how the in-demand music act’s temporary hiatus would affect the organisation’s financial standing.
BTS flight info leak case
On July 22, K-media reported that the foreign airline employee (referred to as Mr A) and two other accomplices, had been sent to the Seoul Central District Prosecutors’ Office on charges of violating the Information and Communications Network Act among other offenses.
The police has since divulged that the three suspects in the case had raked in tens of millions of won by illegally tapping into the flight info of A-list celebrities and eventually selling the sensitive details. The confidential information was reportedly sent out via open chat rooms or social media Direct Messages.
The legal case progress appears to be linked to reports of a Hong Kong airline staffer being caught leaking air travel and reservation details of BTS and other top K-pop idols earlier this year.
In February, it was discovered that the employee sold more than 1,000 sets of private data, amassing profits worth over 10 million Korean Won ($7,000). The case has prolonged despite HYBE filing complaints and taking necessary action against the artists’ invasion of privacy.
BTS-HYBE stock sale suspects sentenced to prison
In another case, the Seoul Southern District Court’s Criminal Division 13 sentenced ‘Mr Kim,’ an employee of HYBE-affiliated Source Music, the label behind acts like LE SSERAFIM and GFRIEND, to 10 months in prison. The 37-year-old staffer has also been suspended for 2 years and ordered to pay a fine of 231 million won on charges of violating the Capital Market Act, as per Yna.co.kr.
Additionally, former Big Hit employee Lee, 33, brought to trial without detention over the unlawful sale of company stocks received a prison sentence of 6 months. Even Lee has been suspended for two years and ordered to pay a fine of 51 million won. 41-year-old Kim, a former Belift Lab employee, was sentenced to 6 months, suspended for 2 years and a fine of 65 million won.
On top of that, the court demanded that they recover the amount of losses they avoided by selling their stock in advance with unreleased information at their disposal. They are believed to have averted a loss estimated at approximately 230 million won.
The court stated, “The crime in this case is a serious crime that undermines the public nature of the capital market, and is likely to be socially condemned.”
BTS’s enlistment slate kicked off with eldest member, Jin, heading off for his mandatory duties on June 14, 2022. A day after the group announced its hiatus in light of the members’ military stints, HYBE’s stock price sunk by 24.78%, only to soar unimaginably in intervals ahead of their epic reunion in June.
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