K-pop band CNBLUE leader quizzed over alleged insider trading

/Courtesy of Korea Times File

By Lee Han-soo

K-pop band CNBLUE leader Jung Yong-hwa is under investigation for allegedly making 200 million won ($171,600) from illegal insider trading, prosecutors said Wednesday.

The singer is suspected of having bought 21,000 shares in his listed management agency, FNC Entertainment, in early July last year after learning the agency was trying to sign Korea’s top comedian, Yoo Jae-suk. The agency announced the deal with Yoo on July 16, which instantly sent the share price to 27,000 won from 20,800 won.

Jung pocketed about 200 million won in profit by reselling his shares, prosecutors said.

An FNC executive was recently questioned over allegedly helping in the singer’s suspected illegal gain.

The prosecution recently raided Jung’s house and the FNC office in Seoul. The prosecution is widening its investigation after finding evidence that other FNC employees and a registered celebrity also were allegedly involved in insider trading.

They refused to elaborate because the investigation is ongoing.