On Tuesday, July 22, the South Korean media outlet, Yonhap News, reported that three former HYBE employees were sentenced to prison following their first trial. This came after allegations were raised against the three employees for selling company stocks after learning about BTS’ military enlistment announcement in advance.
HYBE’s stock prices plummeted by 24.78% after the announcement of the BTS members’ military enlistment. In this regard, the three employees were accused of using insider and undisclosed information to avoid the losses they would have faced. As a result, the 13th Criminal Division of the Seoul Southern District Court declared three different sentences for the employees on charges of violating the Capital Markets Act.
The first employee from Source Music, Kim, aged 37, was sentenced to 10 months in prison, suspended for two years, and also has to pay a fine of 231 million won. The second employee from Big Hit Music, Lee, aged 33, was sentenced to six months in prison, two years of suspension, and a fine of 51 million won.
The third employee from Belif Lab, Kim, aged 42, was also sentenced to six months in prison and two years of suspension, but with a fine of 65 million won. Additionally, the court ordered the three employees to forfeit the equivalent amount they avoided losing by selling their HYBE stock based on undisclosed information.
According to Yonhap News, here’s what the court stated about their decision:
“For entertainment companies, the activities of their artists have a significant impact on sales, so whether or not they suspend their activities is a sensitive issue. 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.”
What is happening at HYBE Labels? All you need to know as Chairman Bang Si-hyuk under fire for unfair trading allegations
In May 2025, according to The Korean Economic Daily, it was revealed that HYBE’s Chairman, Bang Si-hyuk, was under investigation for alleged unfair trading practices. These allegations trace back to 2020, when BigHit Entertainment was rebranded into HYBE Labels. Before the IPO, the chairman reportedly clarified that the company doesn’t have any intentions for a public listing to the investors.
However, without informing the investors, Bang Si-hyuk had allegedly garnered profits amounting to 400 billion KRW through private equity funds after HYBE Labels officially went public. Given that these profits have not been officially filed under the company’s listings, this violates the Capital Market Law. As a result, investigations into the matter are currently ongoing.
While no official conclusions have been made about the case, Bang Si-hyuk could face a prison sentence of five years to life if these allegations are found to be true. This is because, according to the South Korean Law, any illegal profits or avoidance of losses crossing 5 billion KRW will be labeled as a violation of the Capital Market Law.
So far, Bang Si-hyuk has not spoken to the public regarding the allegations and the ongoing investigations.
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About the author
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Aishwarya is a pop culture writer who covers K-drama and K-pop at Sportskeeda. After completing her Bachelor’s in English and Communication Skills, she sought a job that allowed her to explore her passion, and being a K-pop and K-drama reporter felt like the ideal fit. Aishwarya has 3 years of experience under her belt and previously took on several internships in the industry that further motivated her in choosing writing as a career.
Aishwarya believes in conducting extensive research and verifying facts with the help of reputable sources to produce accurate articles. She also spends a significant amount of time on Twitter to understand how netizens are reacting to the latest trends in the industry before crafting her content.
She admires SUGA from BTS for his dedication to his work and aspires to immerse herself into the things she loves, just like him. If she could go back in time, she would jump at the opportunity to be part of “”Reply 1988,”” a K-drama set in a time when neighborhood relationships were cherished and interpersonal connections were of utmost importance. Although she loves how technology has advanced, she would also love to experience living in an era before it was invented.
When Aishwarya’s not writing and reading about the latest developments in the industry, she spends her time crocheting, sketching, cycling, reading Mangas, and cooking.
Edited by Sriparna Barui
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