Why HYBE Employees Are Behind Bars? Leaked BTS Military Service Details Unearths Insider Trading Scandal Causing Massive Stock Market Loss

BTS members Taehyung, Jimin, Jin, RM, J-hope, Jungkook, and Suga are back from their 18-month mandatory military training. The post-enlistment buzz around the Korean pop boy band has taken a serious turn, and that in the courtroom. The parent company of supergroup, HYBE, has been facing internal scrutiny after three of its old and current employees reportedly received fines and suspended prison sentences for leaking confidential details related to BTS's military enlistment.

Why were HYBE employees sentenced to jail?

According to Korea JoongAng Daily, the Seoul Southern District Court on Tuesday sentenced three people for insider trading. The court stated that they had breached the Financial Investment Services and Capital Markets Act.

These HYBE employees had reportedly accessed confidential, non-public information about BTS’s military enlistment schedule. They used this knowledge to sell their HYBE shares just before the company’s stock value dropped. On June 14, 2022, HYBE announced on YouTube that BTS would take a break from group activities due to Jin’s enlistment. The following day, HYBE’s stock price fell by nearly 25%. The court reportedly confirmed that several employees had already sold their shares in advance, aware of the news, which also sparked disbandment rumours.

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As per the same report, a 37-year-old employee at Source Music named Kim has been sentenced to 10 months in prison, suspended for two years, and fined ₩231 million (₹1.45 crore). Lee, a 33-year-old former BigHit employee, and a 41-year-old from Belift Lab have also received suspended sentences and fines.

The court has also allegedly ordered the seizure of the profits they made from selling shares using confidential information.

As per the report, the three sold all their HYBE shares before the company publicly announced that BTS would pause group activities due to Jin’s military enlistment. The announcement was made through a YouTube video on June 14, 2022. This allowed them to avoid losses of over ₩230 million.

After BTS’s announcement, HYBE’s stock reportedly fell by 24.78% the very next day.

Amid all the legal attention, BTS seems to be back on track. Jungkook is said to be planning a solo tour and continues to entertain ARMY through live sessions, while Hobi impressed fans at Lollapalooza Berlin 2025. The OT7, excluding Jin, are currently in Los Angeles for a creative boot camp, preparing for a group album set to release in 2026.