Hive employees sold shares knowing in advance that BTS

Hive employees sold shares knowing in advance that BTS group activities were suspended

Hive employees sold their stocks using undisclosed information before announcing BTS’ suspension of group activities last year.

The Financial Supervisory Service’s Special Judicial Police on Capital Markets announced on the 31st that they sent three people, including the team leader of Hive, to the prosecution on charges of violating the Capital Market Act.

According to the special envoy, they were employees in charge of idol group-related work on the label in Hive, and sold their holdings before the information was released after learning that BTS was temporarily suspending group activities.

On June 14 last year, BTS announced a temporary suspension of group activities nine years after its debut through a YouTube video.

The following day, Hive’s stock price fell 24.87% on June 15 last year.

It was confirmed that three employees of the agency avoided losses of 230 million won as of the closing price on the 15th.

The Financial Supervisory Service pointed out that in this case, Hive raised investors’ confusion by disclosing information on the temporary suspension of BTS group activities through SNS videos, not public announcements or official announcements.

Listed entertainment agencies have a significant impact on the company’s stock prices as a major management matter, the FSS said. “The company should have a system in which related information is disclosed to investors in the right way and strengthen internal control to prevent executives and employees from using undisclosed information.”

“It should be noted that insiders, such as executives and employees of listed companies, may be subject to criminal punishment if they use undisclosed information they have learned about their duties for stock trading or for others,” he said