Bad news is either contagious or Korean celebs are particularly misbehaving these days. CNBLUE lead singer Jung Yong Hwa is under police investigation for insider trading, which sounds and is less dire than Park Yoochun being accused of multiple counts of rape, but it’s still illegal and one of those shady financial dealings like tax evasion that makes the average citizens blood boil. Jung Yong Hwa alleged pocketed an easy $175,000 US dollars in profits by trading his own agency FNC Entertainment stock last July 2015 when the share prices spiked the week top MC Yoo Jae Suk signed with the company. Jung Yong Hwa bought 21,000 shares of FNC stock at around $26 a share and sold it a week late for nearly $33 a share after the steep spike thanks to FNC landing the coup of signing Yoo Jae Suk.
Insider trading is hard to prove but also pretty clear based on trading time and share volume, especially if Jung Yong Hwa doesn’t have big trades on a consistent basis then this one would stand out big time. Also because it’s his own agency therefore is even more likely that he would have known about the impending Yoo Jae Suk signing before the news became public. Penalties for insider trading include disgorging profits and paying a penalty (easy) and/or jail time (bad).