On June 23, a rep from the level stated, “The stock market manipulation allegations are false. We’ll aggressively cooperate with the prosecutor’s investigation. The deals in stocks made last July have been deemed as a normal exchange. The issue is unrelated to stock manipulation.” The rep added, “The situation is not due to the agency, but rather from a person related to the label who made a personal stock deal.”
It’s reported that a financial investigation team has searched the homes of celebrity A, housed under FNC Entertainment, and his friend, the agency building, and other locations. Allegedly, A engaged in insider trading as he knew when the label would sign other celebrities and bought stocks to make a profit before the news went public.
Reports say A and his friend allegedly earned 200 million Won (~$175,000 USD) through insider trading last July when they learned Yoo Jae Suk would be recruited by FNC and bought stocks accordingly.