National Assembly Audit: Culture, Sports and Tourism Committee
At the comprehensive audit of the National Assembly’s Culture, Sports and Tourism Committee on October 24, Rep. Min Hyung-bae (Democratic Party of Korea) disclosed an internal HYBE report titled ‘Weekly Music Industry Report.’ This report is known to be issued weekly and distributed to C-level executives at HYBE and its subsidiary labels.
According to the materials disclosed by Rep. Min, the report contained explicit expressions such as “They debuted all at once at the age when they look their ugliest, so none of them have idol-like features,” “A noticeable tendency related to appearance or sex appeal,” “Surprisingly, none of them are pretty,” and “Surprisingly ugly.” Rep. Min pointed out, “This is problematic because it concerns minors. I am raising this issue because the report contains dehumanizing perceptions and attitudes toward idols.”
HYBE Executive Report: Industry Trend Review Material
[Block 1]
It is meaningful that RM (presumed) soothed the fans by telling stories about the concert from the fans’ perspective. It is also a place to directly report [Blurred Name]’s recovery. However, [Blurred Name] engages in a bit of ‘Latte talk’ (Boomer talk/Old stories) as if he has some pride in pain, and I thought he is a person who always needs attention in such areas.
[Block 2]
Sorry to say this, but the plastic surgery was too severe. The concept brought out with a face changed that much is too plain, which is a bit pitiful. The main outfit is an unexpected school girl look, making the expectation of a natural concept pointless.
[Block 3]
(omission) It is a team taking the members’ young average age as a selling point, but when looking at the actual stage, I thought “So what if they are young…” They debuted them all at once when the members are at their ugliest age, so no one has idol features, and they are really performing a stage on the level of a middle school talent show.
[Block 4]
We are paying attention to the team again because of [Blurred Name], but it seems difficult to go beyond that team because the other members are shockingly ugly. It is a team where the reason they haven’t become popular in the meantime is very clear. [Blurred Name] alone looks a bit like an idol, has an idol-like personality, and was a character openly treated like a princess in every coupling within the team in the meantime. So it seems the company also wanted to keep pushing this kid towards acting.
[Block 5]
<2023-07-05> Scheduled to appear on
[Block 6]
<2023-06-14> Maybe because the story of
[Block 7]
<2024-01-10> Actually, most of the attacks on [Blurred] can be defended by [Blurred]. If someone says someone is ugly, respond with [Blurred]’s past photos. If someone says [Blurred] can’t dance, show [Blurred] still moving stiffly (dduk-ddak); the pattern has already passed on DCInside.
[Block 8]
<2022-11-16> The girl groups from JYP who escaped from [Blurred] were like that in the meantime, and [Blurred] too… and when [Blurred] appeared on
[Block 9]
<2022-06-01> In the meantime, regarding [Blurred Name]’s live skills, the fandom’s defensive logic was “The company doesn’t let the kids who are good at it do it”, but this was shattered by Coachella. Now that lip-syncing is becoming an issue again, the fandom is quickly turning the arrow of blame in a direction other than the team. I think SM fandom is definitely fast at issue transition and direction setting in these aspects. To protect the members, the company has to become the villain, and blaming the company is the easiest way to respond to the atmosphere where [Blurred Name] is stagnating relative to the rise of other 4th gen girl groups.
Questions were also raised regarding the ‘album pushing’ allegations against HYBE. When Rep. Min asked, “There are two methods HYBE uses to inflate first-week sales: one is selling albums on a returnable basis, and the other is disposing of them using fan signing events as bait. Aren’t you doing this?” CEO Kim replied, “We have never sold albums on a returnable basis.”
He continued, “We conducted an internal audit on this matter at the beginning of this year. We confirmed that approximately 0.X% of albums sold in 2023 were sold under such a structure. We will ensure that this method of sales does not occur in the future.” He also countered, “There was no actual pushing, so it is not market manipulation.”
However, Minister Yu stated, “I said during the audit on the 7th that we would investigate this. In my view, HYBE can no longer be considered just a domestic company. It is a company that represents Korea, and it should not be doing things like this,” expressing a negative view on the allegations.
🔗 2024 National Assembly Audit – Culture, Sports and Tourism Committee Meeting Minutes
◯ Rep. Min Hyung-bae: One more thing. You know what ‘album pushing’ is, right?
◯ Witness Kim Tae-ho: Yes, I understand what concept you are referring to.
◯ Rep. Min Hyung-bae: Please take a look at that. There are two methods HYBE uses to inflate first-week sales. One is selling albums on a returnable basis, shown on the left. The other is disposing of albums using fan signing events or lucky draws as bait. You’re doing this, aren’t you?
◯ Witness Kim Tae-ho: We have never pushed or sold albums on a returnable basis. We actually conducted an internal audit on this matter at the beginning of this year because some concerns were raised. We confirmed that only 0.X% of albums sold in 2023 were sold under a structure that allowed returns. Therefore, we have never sold albums on a returnable basis.
◯ Rep. Min Hyung-bae: Then let me show you one more internal document. Please display it. This is an email dated January 4, 2024. It clearly states “Projects scheduled for returns processing.”
◯ Witness Kim Tae-ho: What you just mentioned is exactly the content of the two cases I mentioned earlier.
◯ Rep. Min Hyung-bae: You said it was 2023.
◯ Witness Kim Tae-ho: The returns for albums sold in 2023 were processed in early 2024. After seeing this, we created internal guidelines to prevent this type of sales from occurring in the future…
◯ Rep. Min Hyung-bae: Then let me show you one more. Please display the PPT. This shows additional returnable volume of minimum 70,000 to maximum 200,000 albums. What is this?
◯ Witness Kim Tae-ho: After we confirmed that such discussions were taking place, we ensured that the matters you just mentioned would not occur because they should not happen.
◯ Rep. Min Hyung-bae: So you did it before but you’re not doing it now—is that what you’re saying?
◯ Witness Kim Tae-ho: As I mentioned earlier, we confirmed that some returns occurred based on the judgment of working-level staff, not as company policy. We have therefore established company regulations and guidelines to ensure that this type of sales never occurs again.
◯ Rep. Min Hyung-bae: So there will be absolutely none going forward?
◯ Witness Kim Tae-ho: Yes, there will be none.
◯ Rep. Min Hyung-bae: This doesn’t align with sustainable management or human rights management, given the two examples I just mentioned, does it?
◯ Witness Kim Tae-ho: As you mentioned, I fully understand your concerns. If there were areas where we fell short, we will make efforts to ensure that such concerns do not arise and that improvements are made.
◯ Rep. Min Hyung-bae: This constitutes market manipulation, doesn’t it?
◯ Witness Kim Tae-ho: Since there was no actual pushing, I would say that we have not manipulated the market.
◯ Rep. Min Hyung-bae: How can you say there was none when I’m showing you evidence that there was?
◯ Witness Kim Tae-ho: The volume of albums we sold on a returnable basis was not at all sufficient to manipulate the overall market or affect our sales.
◯ Rep. Min Hyung-bae: Minister, looking at this, inflating first-week sales and promoting chart rankings is not fair distribution, is it?
◯ Minister of Culture, Sports and Tourism Yu In-chon: That is correct.
◯ Rep. Min Hyung-bae: During the audit on the 7th, you said you would investigate if there were tips about album pushing. What do you think now that you’ve seen this?
◯ Minister of Culture, Sports and Tourism Yu In-chon: In my view, a company like HYBE can no longer be considered just a domestic company.
◯ Rep. Min Hyung-bae: Right?
◯ Minister of Culture, Sports and Tourism Yu In-chon: It is an international company and, in fact, a company that represents Korea…
◯ Rep. Min Hyung-bae: That’s why I’m even more concerned.
◯ Minister of Culture, Sports and Tourism Yu In-chon: It should not be doing things like this. That is what I think.
◯ Rep. Min Hyung-bae: I believe the Ministry of Culture, Sports and Tourism needs to look into this thoroughly.
◯ Minister of Culture, Sports and Tourism Yu In-chon: Yes, understood.
◯ Rep. Min Hyung-bae: CEO Kim Tae-ho, just one more thing. It’s generally better for us not to get involved in matters like this, but what do you think about the allegations that BELIFT LAB plagiarized NewJeans?
◯ Witness Kim Tae-ho: It is not true.
◯ Rep. Min Hyung-bae: Take a look at that. There are many people presenting evidence like this, aren’t there?
◯ Witness Kim Tae-ho: Regarding this matter, as the CEO of BELIFT LAB, let me say that we have filed civil and criminal lawsuits against former CEO Min Hee-jin, who raised these allegations. Therefore, we are waiting for the judiciary’s judgment. We intend to prove through the court, while following proper procedures, that this is not true, with various materials and evidence. I ask for your understanding on this point.
◯ Rep. Min Hyung-bae: In any case, the fact that such debates are occurring and becoming controversial and a social issue does not seem desirable, does it?
◯ Witness Kim Tae-ho: What you just mentioned is something I am truly deeply sorry about, because of the series of events that occurred this year, we have caused a lot of fatigue to many people. We will make efforts to ensure that such problems are not repeated and are resolved well.
◯ Rep. Min Hyung-bae: I raised three issues. Is there anything you would like to say to the fans or the public?
◯ Witness Kim Tae-ho: As I mentioned earlier, I am truly sorry for causing so much fatigue. I believe that the fundamental mission of our entertainment company is to bring joy to our fans and the public. In that regard, it is certainly true that we had many regrets this year. Including the points you raised today, we will make efforts to ensure that such matters no longer cause fatigue in the future.
HYBE Official Statement (2024.10.24):
This is an announcement from HYBE.
The monitoring report from our company that was disclosed at today’s (October 24) National Assembly Culture, Sports and Tourism Committee audit is a document that compiles various reactions and opinions from fandoms and the industry.
It was created by excerpting reactions from communities and social media as they were, for the purpose of sharing industry trends and issues as reference material with a small number of internal personnel. It does not represent HYBE’s position.
The report also includes content that an entertainment company should take to heart, as well as positive evaluations from fans. We will hold accountable to the end those who leaked the report to external parties, selectively piecing together only some provocative content to make it appear as if HYBE created materials criticizing artists.
🔗 2024 National Assembly Audit – Culture, Sports and Tourism Committee Meeting Minutes
Q&A on the Statement Released During the Audit:
◯ Rep. Min Hyung-bae: Chairman, right after I finished my questioning earlier, HYBE released this statement. It says something like “The report includes such and such” and ends with “We will hold accountable to the end those who leaked the report to external parties to make it appear as if HYBE created materials criticizing artists.” I would like to ask witness Kim Tae-ho what this means. Could you give me the opportunity?
◯ Chairman Jeon Jae-soo: As the Chairman, I must say that it is highly inappropriate for a company to respond in such a manner to the content of questions asked by an audit committee member to a witness while the National Assembly audit is in progress. Shouldn’t you apologize? How can you release such a statement while the National Assembly audit is ongoing? Releasing a statement like this undermines this National Assembly audit.
CEO Kim Tae-ho’s Apology (at the National Assembly Audit):
◯ Witness Kim Tae-ho: Respected Chairman Jeon Jae-soo and members of the National Assembly Culture, Sports and Tourism Committee, and especially Rep. Min Hyung-bae, who provided many valuable comments today! I humbly accept the criticism that the statement posted on our headquarters’ website while I was at this audit was inappropriate, and I offer my deep apologies.
The reason for posting this statement was that during today’s National Assembly audit, we were flooded with media inquiries asking for our position on mentions related to our company, to the point where it was difficult to respond to each one individually. Additionally, content that was not covered in the National Assembly audit and content that was pixelated in the audit was being exposed as-is, and we determined that the speed of distortion and spread on online communities was significant. Therefore, I confirmed that the statement was urgently posted to quickly respond to media inquiries and prevent incorrect information from being amplified and reproduced.
As I mentioned earlier, it was never our intention to disrespect the National Assembly. However, releasing a statement during the National Assembly audit was clearly our mistake. We fully understand the importance of the National Assembly audit and had absolutely no intention of undermining the authority of the National Assembly. I once again deeply apologize to Chairman Jeon Jae-soo, Rep. Min Hyung-bae, and all members of the Culture, Sports and Tourism Committee.
Q&A on Internal Leaker Investigation:
◯ Rep. Park Jeong-ha: In the company’s statement, there is this passage: “Selectively piecing together only some provocative content to make it appear as if HYBE created materials criticizing artists.” The next sentence is important: “We will hold accountable to the end those who leaked to external parties.” What concerns me is that there may be various opinions within a company, and as you mentioned earlier, you released the statement because there were many media inquiries. However, this part—that you will hold accountable to the end those who leaked to external parties—is a very threatening expression and gives the impression of suppressing free discussion or internal debate within the company.
◯ Rep. Min Hyung-bae: Are you going to hunt for internal leakers or not?
◯ Chairman Jeon Jae-soo: Witness Kim Tae-ho, so are you going to hunt for them or not?
◯ Witness Kim Tae-ho: We have absolutely no intention of hunting for internal leakers. You don’t need to worry about that.