CNBLUE’s Jung Yong Hwa Cleared Of Insider Trading Suspicions, Lee Jong Hyun Fined

[benihime99.livejournal.com]

CNBLUE’s Jung Yong Hwa, who had been under investigation for insider trading, has been cleared of suspicion. Fellow CNBLUE member Lee Jong Hyun, who was also investigated, was charged with a fine of 20 million won (approximately $17,300).

Jung Yong Hwa had been under investigation for purchasing roughly 400 million won (approximately $347,000) worth of FNC stocks on July 8 and 9 of 2015, with which he then made a profit of 200 million won (approximately $173,400) after FNC recruited a major celebrity. However, it was revealed that at the time the stocks were purchased, discussions to recruit the celebrity had not yet begun, and Jung Yong Hwa had no knowledge of FNC’s plans to do so. It was revealed during investigation that Jung Yong Hwa has entrusted his mother with his finances for some time, and the stocks in question were in fact purchased by his mother, to no knowledge of Jung Yong Hwa. It was only when Jung Yong Hwa heard that FNC recruited the celebrity that he sold some of the stocks in their possession.

CNBLUE’s Lee Jong Hyun, according to reports, heard on the morning of July 15, 2015 from an acquaintance that FNC would be recruiting a famous celebrity. Without checking if the news had been reported or not, he purchased FNC stocks. However, once he realized that the transaction would cause legal issues for him, he did not sell the stocks and has been holding on to them, which has actually cost him. The prosecution, considering that Lee Jong Hyun has deeply reflected on his wrongs, has granted him a summary indictment.

Soompi, naver

Comments

[iznanassi.livejournal.com]

Smells like BS but its always hard to prove this stuff.

Where are people getting the news that Yonghwa's stocks were inactive and part of his contract?????

[sandritablue.livejournal.com]

Original article says he got Incentive stock option back in 2014 with the renewal of his contract with FNC and it was made efective 2015, early July http://entertain.naver.com/read?oid=416&aid=0000189295

[lxvecrimes.livejournal.com]

ooo this was a twist, damn cn blue

[horichansenpai.livejournal.com]

Kinda cackling bc I saw some comments prior to this news along the lines of "I hope this means Jonghyun can finally become the lead singer instead"/"I prefer Jonghyun anyways" lol

I wonder if Yonghwa will recover since people jumped the hate bandwagon pretty fast

[carra-mia.livejournal.com]

His career will take a hit, but not letal. Doesn't CNblue have some quite nice follwing outside of Korea also? The can foster it for time being etc.
Both Yonghwa and Jonghyun gonna take a lot of shit for it, but I think paradoxically Yonghwa who wasn't fined bigger one - no one's gonna believe in mommy stuff and that looks bad in comparision to Jonghyun who admitted, looking for excuses but still, to doing stuff.

[smyers92.livejournal.com]

I feel really bad now. I got my mom into kpop through cnblue. She was a boice in every sense of the word. Had all their albums, watched all their dramas. Her ring tone for my dad is even 'my love' (by jonghyun) from a gentleman's dignity. Her favorite was jonghyun. I feel like she's going to be so sad now

[magicpineapple.livejournal.com]

that is so precious lol awww

[tempestdance.livejournal.com]

what a fucking bs. jung yong hwa only converted his incentives to stock in july 2015 when his contract was signed in feb 2014 and the only reason he's acquitted is because everything was done supposedly by his mom.
jonghyun on the other hand bought the stocks a week after yonghwa did and didn't even sell his stocks because he found out it was illegal but since he confessed to the police he bought the stocks with that intent so he still has to pay the fine.
ugh i mean yonghwa got out with a loophole but he's so guilty.

[sandritablue.livejournal.com]

It's said he sold part of them and that's why he has to pay, FNC worded it out carefully to confuse but in reality he sold part of them and supposedly when he found out it was illegal he stopped selling them and kept the rest of stocks that remained. Other 2 FNC workers also were investigated and one who profited USD 4,000 didnt paid fine but another one that profited USD 50,000 had to pay fine like Jonghhyun.

Prosecuter said it was proven that Yonghwa cashed his incentive when the negotiation with JSK hadnt started while Jonghyun bought knowing about JSK and 1 or 2 days before it was made public JSK intention. That's the main reason Yonghwa is innocent, prosecutor said there is proof that is true.

[ah0000.livejournal.com]

Like I get the whole inactive stocks and "mom did it" narrative is suspicious but you would think they can't lie about when the discussions hadn't started yet right? I'd imagine there would be some kind of evidence that FNC would have to present to show like when first contact happened between the two parties.

Also because I'm not familiar with this subject..how do these things even come to light? Is there some kind of background check when stocks are sold or something?

[benihime99.livejournal.com]

I think there's usually a backgorund check when insiders buy stock from their own company before a big deal and profits a lot from it

[scionofawhisper.livejournal.com]

They could have just been talking about it informally before more official discussions started... I think it would be rather easy to make it seem like discussions started later than they did...

[djeedjes.livejournal.com]

So only Yonghwa who got stocks for renewal incentive and the other 3 didn't?

[benihime99.livejournal.com]

That wouldn't be surprising
He's the leader, main singer, main composer, main writer, does stuff for labelmate...

[sra-interesante.livejournal.com]

before this investigation i never realized
how many people wants to drag cnblue ....

many netizens commenting on this scandal clearly dont have idea how stock market and economic crimes work but they still had the guts to judge and expose their own ignorant asses with some really extra comments lmao

just for all the people that wanted to see them going down , reading this feels even better haha

[marsinblue.livejournal.com]

I agree with you, I was surprised about how easily people turned on them, not only whilst it was still under investigation but even now that he's been acquitted, especially since a) most people do not have enough understanding of stock market and business dealings and b) people don't have access to the files/evidence that the authorities had.

I do agree things don't appear to have been clarified as clearly as I'd liked to - and whilst investigations were underway I refrained from making comments about his innocence or not since I felt I didn't have the elements to comment either way - but it still surprises me that many are so keen to write him off and push the guilty tag not only before but even after acqutital, especially since from debut till now he's always been exemplary in every way and - I thought - generally well-liked.

Alas it just shows how fickle a positive image in this industry can be.

[sra-interesante.livejournal.com]

ia
people jump way too fast in the hate wagon ...
like puting one member clean reputation against others ... using ftisland as excuse to hate on cnblue

boices and prims are not really vocal in kpop forums but this couples of days in every comments section suddenly so many people that wasnt there for hongki solo album or ftisland last comeback,was ready to drag cnblue .. you know "to protect ftilsand" but the true is they just want more scandals and they care nobody

[marsinblue.livejournal.com]

All this incident reminded me of why in some ways I've been distancing myself from being an active fan and so. So much disappointing behaviour.

Sadder than the behaviour of non-fans / casual kpop fans that chanced on this piece of information is to see how easily some fans of FTISLAND and CNBLUE turn against each other, blame and rejoice in one another's misfortunes, and even sadder is to see some so-called CNBLUE fans attack and blame members within the group and wish that specific members were thrown under the bus (although not a surprise based on many years of following the group).
Like the old Hamlet saying goes, "There's something rotten in the state of Denmark", or in this case the "FNC Kingdom in general and the Boice fandom". I just don't have the heart anymore to follow this dysfunctional fandom around, as much as I still like the band itself.

[amandaplan.livejournal.com]

i just began to love the lead singer after infinity challenge recently, but this is nagl for him and seems very sketchy.

[lightframes.livejournal.com]

*sweats nervously*

[demonshide7.livejournal.com]

Still love cnblue, the talent is great, songs are pretty good, so... businesswise, well, hell.... even I could make that mistake...
Always liked LJH's compositions. Love KMH more tho... since he looks .... hella good. Would still support the band.  Though have no clue how they're going to ride this storm. If the leader is strong, he'll be able to pull his whole team with him to greater heights. I would suggest going back to their original concept on songs, tho... For thenKorean market. Brit Pop may not be the way to go.