BTS, TXT's label HYBE under FTC investigation over possible falsification of crucial documents

HYBE is facing scrutiny from the Fair Trade Commission over the alleged falsification of documents, which led to an on-site investigation.

By Hrishita Das

Updated on Jun 24, 2024 | 07:50 PM IST | 142.6K

BTS: courtesy of BIGHIT Music, HYBE logo

HYBE, the agency behind many popular K-pop groups such as BTS, TXT, SEVENTEEN, etc., is under scrutiny by the Korea Fair Trade Commission (FTC). Apparently, K-pop cooperation is facing a comprehensive investigation by the FTC due to concerns about the accuracy of its corporate filings. This probe follows HYBE's recent classification as a large corporate group, which imposes rigorous disclosure and compliance obligations.

FTC allegedly investigates HBYE's irregular filing

On June 20, the FTC conducted on-site inspections at HYBE’s headquarters in Seoul, marking the commencement of a detailed inquiry into the company's documentation practices. The investigation will expose if the company’s irregular filings are intentional misrepresentations or omissions that would constitute a breach of fair trade regulations.

HYBE has rapidly expanded its business portfolio through strategic acquisitions and mergers, which made it subject to stricter regulations after being designated as a large corporate group. Earlier this year, FTC added the company to the large corporate group with over 5 trillion KRW ($3.6 billion) in combined asset value. Moreover, HYBE is the first K-pop agency to be added to the list.

This designation is part of South Korea's efforts to enforce greater transparency and regulatory compliance among its largest business entities, which are often referred to as chaebols. The FTC's investigation highlights the importance of accurate reporting and compliance in maintaining fair competition and corporate accountability.

More about HYBE cooperation

HYBE is a South Korean multinational company established in 2005 by Bang Si Hyuk. However initially, it was called BIGHIT Entertainment, but it expanded to become much more. The company currently operates as a talent agency, music production company, event management company, concert production company, music publishing house, and so on.

Home to some of the most popular K-pop groups in the industry, including BTS, TXT, Newjeans, LE SSERAFIM, SEVENTEEN, ENHYPEN, ILLIT, and more, it has gone on to become one of the top K-pop agencies in the country. Furthermore, it also consists of multiple subsidiaries, such as Big Hit Music, Belift Lab, Source Music, Pledis Entertainment, KOZ Entertainment, and ADOR, collectively referred to as Hybe labels.