CNBLUE’s Yonghwa confirmed to be investigated for insider trading in FNC scandal

Yonghwa

A few days ago, media outlet Dispatch reported that one of the people being investigated for insider trading within FNC Entertainment was CNBLUE member Yonghwa. Today, this report was confirmed as police summoned the singer in for questioning on suspicion of making $175,000 as a result of insider trading.

The CNBLUE leader is being accused of buying 400 million Won (~$342,564 USD) worth of stock and selling it for 600 million Won (~$513,846 USD) a week later. On July 16 of 2015, FNC Entertainment’s stock rose from 20,800 Won (~$17.80 USD) a share to 27,000 Won (~$23.12 USD) a share following the signing of a popular celebrity, who’s speculated to be Yoo Jae Suk. It’s being investigated when Yonghwa discovered the celebrity would be signing with the agency, and details of the stock deal are being thoroughly probed.

If Yonghwa did do that with the buying and selling stocks, it sure sounds fishy, but even if they have receipts for that it’s still circumstantial. Prosecutors would still have to prove he did that because he knew about Yoo Jae Suk‘s signing with FNCE, and that’s why these cases are difficult to prove.

As such, even if he did do this, I find it hard to envision him being getting caught up with anything, but it’ll probably damage is reputation regardless.

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