Three employees of subsidiaries of Hybe, parent company of the agency representing K-pop superstars BTS, denied insider trading during the first hearing of their trial on Tuesday, claiming they were unaware that BTS member Jin's enlistment is considered "material, non-public information."

The Seoul Southern District Court held its first hearing for the three defendants, who include a former employee of BigHit Music, a former employee of Belift Lab and a current employee of Source Music. All three firms are subsidiaries of Hybe.

The three are accused of selling their Hybe stocks before BTS announced a temporary halt to their group activities on June 14, 2022, due to member Jin’s upcoming enlistment.

After the news went public, the company’s share price plunged nearly 25 percent, wiping out nearly 2 trillion won ($1.45 billion) off its market value.

The three employees were able to avoid a combined loss of approximately 231 million won, according to the prosecution.

At the hearing, defense attorneys denied the charges, arguing that while the employees knew of Jin’s enlistment, they were unware of the group’s break or the timing of the official announcement. “They did not know whether or not enlistment was considered material, non-public information,” according to the attorneys.

The prosecution maintained that BTS’ hiatus from group activities is considered “material, non-public information” that could “significantly affect investment decisions.”

The next hearing is set for Nov. 26.