HYBE Faces Intense Scrutiny Over Leaked Documents, Idol Appearance Remarks and Unfair Album Sales Practices

 HYBE, one of South Korea's leading entertainment companies, found itself at the center of a heated debate during the National Assembly audit on October 24, 2024. HYBE COO Kim Tae-ho, who also heads Belift Lab, was questioned over two major controversies: the creation of internal documents criticizing artists from rival companies and alleged manipulative album sales tactics.

Leaked Documents Containing Offensive Remarks

Democratic Party member Min Hyung-bae presented a document reportedly produced by HYBE that included derogatory comments about other K-pop artists. The document contained harsh criticisms of physical appearances, including remarks like, "They debuted at an age where they're bound to be unattractive" and "Others were shockingly ugly." Min criticized the company for its demeaning tone, especially toward minors.

Kim Tae-ho attempted to defend HYBE, explaining that the document was a compilation of online comments and not an official stance of the company. "We closely monitor public opinion about HYBE artists and the broader K-pop industry. The document in question reflects some of these observations but does not represent HYBE's official position," he said.

However, the situation worsened when HYBE issued a public statement later that evening, vowing to hold those responsible for leaking the document accountable. The statement was met with outrage by the National Assembly members, who saw it as an attempt to undermine the ongoing investigation. Chairman Jeon Jae-soo expressed his anger, asking, "Does HYBE believe the National Assembly is so easy to disregard?"

Highlighted Section 1 (left side):

"Members who are unattractive in appearance or older were forced to debut together, so no one realized they weren't idols… (a related person said this)."

Highlighted Section 2 (left side):

"The personalities were extremely bad."

Highlighted Section 3 (left side):

"Regarding their appearance and sex appeal, they seemed to be highly conscious of it."

Highlighted Section 4 (left side):

"Some members were in so much pain that they couldn't even open their eyes properly."

Highlighted Section 5 (right side):

"(This group) was criticized for their looks at the time of debut, but when looking at them now, I wonder if SM's beauty standards have changed."

Highlighted Section 6 (right side):

"Other members were dragged into the controversy unjustly."

Accusations of Manipulative Album Sales

In addition to the document controversy, HYBE was also criticized for allegedly engaging in "conditional return album pushing" tactics. This practice involves shipping more albums than the actual demand to boost first-week sales numbers, with the option of returning unsold copies. Min Hyung-bae highlighted how this tactic could distort sales charts and give an inaccurate portrayal of demand.

Kim Tae-ho acknowledged that a small percentage of albums sold last year were part of this scheme but emphasized that it was not a widespread practice. He assured the Assembly that HYBE had implemented guidelines to prevent such actions from happening again.

Reactions from Culture Minister and Legal Disputes

Culture Minister Yoo In-chon also weighed in on the situation, warning that as a global company, HYBE needed to uphold higher standards. He expressed concerns about the company's practices and emphasized the importance of maintaining integrity in the entertainment industry.

Further complicating matters, Kim Tae-ho denied allegations that Belift Lab had plagiarized the concept of NewJeans, another K-pop group. He revealed that HYBE had initiated legal action against Min Hee-jin, former CEO of ADOR, over the accusations, and the company was awaiting the court's decision.

Kim Tae-ho ended the session by apologizing for the company's recent actions and the fatigue they had caused within the K-pop community. "As an entertainment company, our mission is to bring joy to our fans and the public. We recognize the shortcomings of this year and will strive to prevent such issues from arising in the future," he said.

Despite the reassurances, the controversies surrounding HYBE continue to raise questions about transparency and ethics within the K-pop industry, especially as the company navigates both domestic and international scrutiny.