The Prosecutor’s office dropped charges on Jung Yonghwa (27), who was investigated for using undisclosed information to earn profit. But to Lee Jonghyun (26), they concluded summary indictment with 20 million won (~$20,000) fine.
Seoul South Prosecutor’s Office revealed on Thursday that Lee (Jonghyun) and FNC employee’s acquaintance Park (39) are summarily indicted for 20 million won and 40 million won, respectively. But the Prosecutors dropped charges on Jung as the time of purchase was before hearing the undisclosed information.
According to Prosecution, there was news among the agency employees that “We have signed with a popular celebrity and will release it in the morning” in the evening of July 15. Upon hearing this, Lee bought 11,000 shares of the agency right away. When the stock price rose steeply the day after, he sold parts of the shares that he had been owning since January and earned short-term resale profit.
But because the profit amount is not high and he still attains some of the shares, as well as considering the agency’s continued recommendation to purchase stocks, the prosecution decided on a summary indictment. During the investigation, Lee admitted to all charges and expressed his regret.
In regards to Jung Yonghwa who was in the middle of the controversy, the Prosecution explained, “because the timing of purchase was around July 9, it was determined to have been bought before obtaining the undisclosed information.” Park, who was investigated on the same charge, was summarily indicted for 40 million won. Agency employee Lee (26) had only small profit, thus received nonindictment.