Jung Yong Hwa Investigated for Insider Trading After Making Windfall on FNC Entertainment Signing Yoo Jae Suk
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).
So disappointed to hear this!
LOL, i’m happy for this. JYH show the true colors
Very mature. Kuddos. *rolls eyes*
Insider trading is so very common in the business world, but while its a lot less serious than rape, its still illegal and something to look down upon. I feel like celebrities who get caught for things like this, betting illegally or evading taxes are let off the hook too easily after a few weeks of booing. There really should be greater consequences or anyone can just do it and get away.
Feel the same as you!! Maybe i’m wrong but somehow, i think SK’s justice/penal system isn’t really efficient, especially for these cases… Idols only have to write an apology letter or just “reflect” for some time and then, it’s okay, like they mysteriously become innocent… This is the same in some other countries too but here, as we talk about SK, this comes to my mind.
this guy blow. why he try to ruin his image by doing something like this? he need jail time.
Wow all these celebs with innocent images tsk tsk
No one is safe – 2016
LOL.
Lock your doors! Hide your children!
Cause he coming for everyone!
Let’s see who will be next !!
+1. Apparently to do with Lotte cover up.
I expect to What the Heck a lot of Korean news before the Lotte inspection is settled.
WHAT THE HECK!
He’s a talented Kpop musician and composer, rare among Kpop idols. It would be sad if he’s convicted.
He’s probably clueless. Slap him with a fine and move on….and that’s assuming it actually was based on insider knowledge. Most people still think Martha Stewart went to jail for insider trading…she didn’t. She got busted lying to the feds.
Lady Koala, please post an update about this case. The inspection is done and the verdict is out. Also there are benefits for readers to learn something about stock insider trading that everyone working with a public company should know. Thanks.