The results of the investigation of insider trading at FNC Entertainment have been revealed.
Jung Yonghwa and Lee Jonghyun of CNBLUE were both accused of illegal stock trades made on the basis of FNC gaining a new, famous celebrity. However, after the two were questioned by police and brought to court, FNC sent out a press release revealing the results, stating, "Jung Yonghwa was ruled as not guilty and will not have any punishment. However, Lee Jonghyun was indicted and must pay a fine of 20 million won (approximately $17,400 USD).
Shares of FNC Entertainment valued at around 400 million won (approximately $350,000) were purchased under Yonghwa's name on July 8-9, 2015. Although he was accused of making the purchase with insider information, it was revealed through the investigation that FNC had not even begun discussing signing Yoo Jaesuk at that time, making it impossible for Yonghwa to have purchased the stocks illegally.
Additionally, since Yonghwa's finances are managed by his mother, she is the one who actually made the purchase. At the time, Yonghwa had no idea that she had purchased the shares. Discussions of the famous celebrity signing with FNC Entertainment only began on July 16, 2015.
In Jonghyun's case, late at night, a close acquaintance told him about the famous celebrity signing with FNC. Without verifying the tip, Jonghyun purchased shares of FNC the very next morning.
However, after learning that the purchase may have been illegal, he decided to hold onto the stocks rather than sell them.
The two have said that they are both deeply reflecting on their actions.
