Musician Jung Yong-hwa (Review Star)

Rock band CNBLUE vocalist Jung Yong-hwa was summoned by prosecutors for alleged insider stock trading Tuesday.

Jung, 27, allegedly earned some 200 million won ($172,000) from stock sales in July 2015 using insider information that FNC Entertainment, home to the artist, was going to sign a contract with high-profile TV show host Yoo Jae-seok that month, according to the Seoul Southern District Prosecutors’ Office on Tuesday.

Jung reportedly bought 21,000 shares of his home agency before the announcement of the contract, and sold them after Yoo joined the agency.

TV show host Yu Jae-seok (Review Star)

The agency’s stock price surged by the daily limit of 30 percent to 27,000 won ($23.20) on July 16, 2015, the day the announcement was released.

Korean law stipulates that an act of insider trading is a breach of regulations on the capital market and financial investment industry. Those who violate it are subject to a maximum of 10 years in jail or fines of up to 500 million won.

(FNC Entertainment)

The Prosecutor’s Office is looking into whether other celebrities under the agency are involved in the insider trading.

FNC Entertainment said it will issue a statement on the case after the investigation is over.

By Son Ji-hyoung (json@heraldcorp.com)

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