Previously, the management company has been rumored to have benefited from stock market manipulation or insider trading which concerns an artist under the company. However, FNC Entertainment denied such claims.
Recently, the financial sector of Seoul’s District Public Prosecutor’s Office has summoned Yonghwa for questioning with regards to the accusations of insider trading with an alleged profit of 200 million won last July.
The prosecutor’s office revealed that Yonghwa had allegedly bought 21,000 shares of FNC Entertainment’s stock through insider trading and is currently being investigated for it.
Reportedly, Yonghwa was accused of buying 400 million won worth of stock after learning of the company’s plan to sign a top celebrity and selling it for 600 million won a week later. In July of this year, FNC Entertainment’s stock rose from 20,800 won a share up to 27,000 following the signing of a top celebrity, who was speculated to be the ‘nation’s MC’ Yoo Jae Suk.
With regards to this issue, FNC Entertainment reveals, “The prosecution is investigating the case, and we think that it would be wrong to disclose any information to outsiders of the investigative agency.”
Meanwhile, the prosecution is currently investigating where Yonghwa learned the said inside information and are looking into the detailed accounts of FNC Entertainment’s stock trading.
Stay tuned for more updates on this issue!
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