Hive, stock market insiders knowing in advance that 'BTS suspension of activities'

It was discovered that employees who knew in advance that the group BTS would stop their activities sold their stocks.

On the 31st, the Financial Supervisory Service Capital Market Special Judicial Police (Financial Supervisory Service special police) announced that they had sent three people, including the team leader of the BTS agency, to the Southern District Prosecutor's Office on the 26th with "indictment opinions ."

They avoided a loss of 200 million won after figuring out undisclosed information about the bad news that BTS would stop their activities before it was released, and then got caught.

BTS officially suspended team activities in June. As it was the news of the cessation of activities of the group, which accounted for an absolute portion of Hive's sales at the time, the plunge in stock prices was a natural step. In fact, on the 15th, the day after the official announcement of the suspension of activities, Hive's stock price plunged 24.87% from the previous day to 145,000 won. The market capitalization was blown away by about 2 trillion won, and at one point during the intraday it was pushed to 27.97%, hitting the lower limit.

There are three insiders, including the head of the agency, who knew in advance the news of the suspension of BTS activities and sold stocks. This is an act in violation of Article 147 of the Capital Markets Act. Under the Capital Markets Act, it is strictly prohibited for executives or employees of listed companies to make stock trades in advance by exploiting them when they become aware of undisclosed management information as 'unfair trade' and prosecute criminal officers.

The special envoy of the Financial Supervisory Service said, “These are employees in charge of idol group-related work, and they acquired unfavorable information about the temporary suspension of group activities on the job, and sold their stocks before the information was announced to the public, totaling 230 million won (maximum per person). 150 million won) was confirmed to have been avoided."

"As a listed company, large entertainment agencies need to prepare measures to protect investors that match their status in the industry, such as strengthening internal control to prevent executives and employees from using undisclosed information," he said. You must keep in mind that you will be subject to criminal punishment if you use undisclosed information you learned about in stock trading or let someone else use it."

In addition, "Listed entertainment agencies have a significant impact on the company's stock price as a major management issue of the activity plan of key artists." We need to prepare measures to protect investors that match the status of the industry, such as strengthening internal control to prevent this from happening.”

Lastly, he added, "In the future, the special envoy of the Financial Supervisory Service plans to conduct a thorough investigation and take stern action if anyone commits any act that undermines the fair trade order in the capital market."

Reporter Yoon Jun-ho, Ten Asia delo410@tenasia.co.kr