Jung Yong Hwa films a culinary-themed movie in Prague. (Photo : Instagram/Jung Yong hwa)
It was reported a few days ago that some artists working under FNC Entertainment are being investigated for stock manipulation. The names of the people involved have already been released and CN Blue's Jung Yong Hwa's name came up.
On June 28, the singer was summoned to the court due to his alleged involvement in insider trading. He was said to have gained around KRW200 million won or US$170,000 through the illegal stock trading practice last year.
According to Yonhap News Agency, in July 2015, Jung and his mother purchased 21,000 FNC Entertainment shares which cost KRW400 million or about $350,000. Within the week of purchase, they sold the shares for KRW600 million won and earned KRW200 million.
The investigators were saying that Jung decided to buy some of FNC's stock shares after learning that a major star is signing an exclusive contract with the agency. The celebrity being talked about was revealed to be Yoo Jae Suk.
As expected, when Yoo joined the agency in July 2015, the company's stock price shoot up by as much as KRW27,000 per share. After figuring this out, the Financial Services Commission of South Korea recommended an investigation to the prosecutor's office last month, and the authorities immediately responded by raiding FNC Entertainment's headquarters as well as Jung's home, Seoul Daily News reported.
Insider trading is illegal and violates Korea's Capital Market Act. This practice of stock trading is where a person use confidential information to his own advantage, since he or she knows when the stock prices would go up.
The CN Blue leader is facing up to 10 years imprisonment if found guilty of violating the law on financial investment and the CMA. The agency's CEO Han Sung Ho was also called in for questioning but he denied any illegal dealings within his company.
On June 23, the FNC Entertainment spokesperson also said that the suspicions about stock manipulation are totally unfounded. He added that they will cooperate with the investigation.
FNC Entertainment originally only housed musicians, particularly bands. Its leading groups are FT Island and CN Blue. Later, the company branched out and its roster now include actors and entertainers like Jung Hyung Don, Lee Dong Gun and Song Eun Yi.
Watch Jung feat. Sun Woo Jung A in "Hello" music video:
