FNC Entertainment released the result of prosecutor’s investigation regarding the charges of Jung Yonghwa and Lee Jonghyun’s purchase and profiteering with undisclosed information about a famous celebrity’s signing.
Through a press release, FNC announced, “Jung Yonghwa, Lee Jonghyun, and the associates of FNC actively cooperated to the prosecutors’ investigation. As a result, Seoul South Prosecutors’ office concluded ‘free of charge’ to Jung Yonghwa as misunderstanding regarding his charges have been resolved, and ‘summary indictment’ to Lee Jonghyun.”
Following is the full text of their press release.
1. Summary of Prosecutor’s investigation and charges
Our signed artists, CNBLUE’s member Jung Yonghwa and Lee Jonghyun, were investigated by Seoul South Prosecutors’ Office financial investigation department since last May for acquisition of FNC entertainment’s shares using ‘undisclosed information regarding a famous celebrity’s contract’.
2. Prosecutor’s measures on Jung Yonghwa: charge dropped
The charge on Jung Yonghwa was that he became aware of the undisclosed information in early July 2015 and used it to buy approximately 400 million-won worth of FNC entertainment’s stocks, earning 200 million-won’s worth of unfair profits. But with detailed proof, he explained the following circumstances which led to the charges being dropped from the prosecutor’s office.
Prior to the public offering of the company in February 2014, Jung Yonghwa had signed an incentive contract with a format similar to stock option with FNC. With the cash received according to the contract, he obtained FNC entertainment’s stocks in early July of 2015. But at the time of the acquisition, the negotiations for the celebrity’s signing was not in process. Jung Yonghwa purchased FNC’s stocks without knowing the information about the contract.
Also, Jung Yonghwa had always delegated the management of his property to his mother. Aforementioned dealings that became problematized were all bought and sold in actuality by his mother. At the time of transaction, Jung was not even aware of the shares being bought under his name. But following the purchase of the stocks, when the said celebrity’s contract news was reported on July 16, Jung Yonghwa’s mother who does not have experience in stock investment saw that the share prices rose high and partially sold the owned shares. It was in no way an attempt to realize profit from the information about popular celebrity’s signing.
Jung Yonghwa explained this fact in detail with proof to the Prosecutor’s office, which led to the charges against him being dropped.
3. Prosecutor’s measures on Lee Jonghyun: Summary Indictment, fined 20 million won
It is a fact that Lee Jonghyun purchased FNC entertainment’s shares, upon hearing from an acquaintance in early morning of July 15 about the “popular celebrity’s contract information” without confirming that it was reported in the news that morning.
Such a purchase is derived from Lee’s ignorance about the law, and after recognizing that such transactions are problematic legally, he intentionally did not sell off the shares and maintained his ownership until now, rather taking losses.
Today, the Prosecution considered his deep self-reflection on creating a societal disturbance, gave him the lightest ‘summary indictment’ charge.
4. FNC entertainment’s position and future plans
Due to our poor management, it resulted in prosecutors’ investigation and summary indictment on some of our artists. We wish to truly and deeply apologize.
But there is no direct involvement of our agency or our staff in usage of undisclosed information. Some of the reports by media about us being investigated for the block deal is not true.
In regards to this incident, we will improve our internal system and regularly educate our staff and artists so that such offense will not recur in the future.
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So happy he is "safe", but I'm sad he is going through such horrible issues and of course he would be affected anyway as a lot of people were ready really quickly to declare him guilty...
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Thank you for this wonderful new. OMG happy tears and I'm still fasting right now.
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긴 말은... 생략. 정용화는 정용화다
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Thank you for this! So emotionally wrung out right now from relief.
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진짜 할말은 많치만 .....고생했다
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that's a good news...thank u...
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Thank u for the news! I don't know how to properly express how I feel right now... I was worried beyond reason.
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Thank you so much for giving us this good news. I'm so happy right now, but there is still much damage repair to be done to his reputation and image, and so let us all unite and help rebuild it through the spreading of good vibes, telling people of his kindness, his talent, his contributions etc.
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우선 지금은 순수하게 기뻐하겠습니다.ㅠㅠㅠㅠㅠㅠ
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ㅠㅠㅠㅠㅠㅠㅠㅠㅠㅠㅠㅠ
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Thank you!! I am so mixed with relief and heartache for him to go through such a horrible experience. But I am certain that he will come out even stronger and wise from it.
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thank you so so much! I'm glad yonghwa has finally been proven innocent! But his reputation has been dragged through the mud due to fnc's incompetency TT
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Fnc better fix everything, he make yonghwa through all of this. He already get the hate, bcos this news come out on tv its better that they clear this in every media thay possible. Happy.......
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너무 벅차게 기뻐 표현을 어떻게 해약할지 모르겠어요. heich님 영어로 번역을 해서 트위터에 올려 주시면 안될까요. 해외 기사들을 보니 제각각
정확하게 보도도 안되고 많은 부분을 도려내서 오해를 살만한 여지가 생겨 오히려 용화에게 화살을 돌리는거 마음이 아파서요. 항상 heich님의
번역이 제일 정확한 것을 알기에 어려운 부탁드려요. -
와 진짜 ..난 명의도용...뭐이런거나 그때라스나왔을때 곧 주식줄꺼라고...한대표가 그랬는데,,, 난그걸 그때준거아닌가...
참,,,고의든 우연이든 이래저래 할말없게 하는 소속사네요..... -
암튼,정용화는 늘 옳다~~~~~~~~내스타 사랑해~~
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would you like to translate the whole thing i need to be enlightened
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Thank you very much for the translation! Omg the investigation was in progress starting last May but he managed to smile and work so hard during that period ! He must have gone through a very hard time! A sigh of relief! So happy and glad! I was on the fire the last few days!
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Thank you for the trans. I'm just glad that all is well but still annoyed that his name had to be dragged when they could have spared him all the hate he is getting right now.
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Such a good news!! I am heartaching as a fan ~ imagine how "torture" it was to YH. Though we know he will stay even stronger.
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다들 마음 고생하셨어요~
우리모두 잘 견뎠네요. -
Relieved, but my blood boils that all the hard work he's put in to build his reputation has been tarnished by tabloids and an incompetent agency. Stock options! He's completely innocent!
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하루종일 얼마나 맘졸였는지 ‥모두들 고생하셨어요‥ 힘이 되어주셔서 감사합니다 ‥진심으로‥
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Happy that YH is finally vindicated!!!! It's frustrating and sad that fnc fail to take care of him again and again ...
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검찰 발표 내용과 다른 내용이 상당히 있네요.에펜씨 진짜 ㅡㅡ
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funny how only YH is emphasized in the article's title..
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I added JH's part in FNC PR. "After recognizing that such transactions are problematic legally": TOTALLY MISLEADING. In other words, Jonghyun SOLD "before" knowing these transactions were illegal. That's why he was fined, HE'S NOT THE SCAPEGOAT. YONGHWA IS! I didn't want to bring up another member, but because haters are tarnishing his name without knowing the truth, please bear with me.
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i am so glad that this is clarified!
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Such a mess, hope Yonghwa fill better now!
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YH is innocent not because it's traded by his mom. It's because his incentive and the timing to buy FNC stock.
Incentive:
He buy the shares because of the stock option term in his contract signed in 2014 and it's suggested by FNC with text message as proof.
Timing:
The insider info of YJS's sighning is leaked out in July 15 2015. YH bought the shares in July 9 2015. He didn't know the info when he the stock is bought. And there is no proof that he knew it too.
Selling stock when the price rises is the thing that everyone knows. You don't have to be Buffett to knows that. And it's totally legal.
It stupid for FNC to keep pointing out it's traded by his mom. I know it is the truth cause YH is busy with his work and he has a tight relationship with his family and it's reasonable that he leave his money thing to his mom. But it has nothing to do with is innocence. A 28years old man don't even know that he bought that large amount of stocks and his mom just bought the stocks at that exact time to make a lot of money? This report just seems to be that way.Most ppl don't know what stock option is and how it works. Then they just focus on the part that they could understand and blame YH for using his mom to escape the law and still believe that he's guilty.
But actually they believe YH is guilty when the news that YH is under investigation came out. Ppl tend to believe that there is always stains under a perfect cover and law always has different standard for the rich and the poor. They like to see ppl like YH, a man with everything, making a mistake. Sometimes, you are guilty only because you are strong, rich and perfect. That's the dark side of human nature.
I hope YH can grow from these turmoil and be even stronger.
I believed truth won't be covered forever. -
I hope he doesn't let fnc get away this.
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Glad he safe. Keep praying for him since the news abt investigation came out. But i do hv to agree,it is a shame that the media keep on focusing on how he was safe because of the involvement of his mother. The involvement just nothing compare to the whole thing abt the date he purchased and the contract he signed. He is totally innocent. Hope he get a good rest at home and come back stronger. I will forever be by YH n CNBlue side.