FNC Entertainment announced on Thursday that singer Jung Yong-hwa from the K-pop boy group CNBlue has been acquitted of recent charges of insider trading.
Jung’s talent agency also announced that another member of the group, Lee Jong-hyun, had been accused of the same crime and had been fined 20 million won ($17,400).
“We deeply regret and apologize to those fans who were disappointed upon hearing the news. But we want to emphasize that the insider trading never occurred,” FNC announced through an official statement.
Jung was suspected of having earned some 200 million won in July 2015 by illegally using information from his talent agency, FNC Entertainment, which was planning to sign an exclusive contract with a popular celebrity. He was sent to Seoul Southern District Prosecutors’ Office for investigation.
Jung was acquitted after proving he had bought FNC stock before the entertainment company initiated discussions with the popular celebrity.
Additionally, Jung’s mother had been managing Jung’s income, and it was she who sold his shares when FNC suddenly spiked.
Jung was reportedly unaware that his mother sold off the stock.
The other member, Lee, was indicted because it had been confirmed he committed insider trading out of a lack of legal knowledge.
Lee heard news of FNC’s recruitment of a new celebrity, and he bought the company’s stock without properly checking that the news had been reported.
He later realized that his actions were illegal and has not sold the stock he purchased since.
By Jin Min-ji