HYBE, the South Korean entertainment giant, was found to have underreported its annual revenue from approximately 2.17 trillion KRW to just 2.1 billion KRW in 2023. This significant discrepancy also resulted in the company paying about 12 million KRW less in plastic waste disposal fees, according to data revealed by the National Assembly’s Environment and Labor Committee.
Park Jeong, a member of the Democratic Party and the Environment and Labor Committee, unveiled these findings based on audit materials provided by the Korea Environmental Corporation. HYBE had input its annual revenue as 2.1 billion KRW in the Environmental Corporation’s system, but its financial statements for 2023 show actual sales exceeding 2 trillion KRW. This error, where three zeros were left out, resulted in the company underreporting its revenue by 1,000 times.
Due to this error, HYBE’s plastic waste disposal fee, which is calculated based on revenue and waste emissions, was significantly reduced according to reports.
Even as digital streaming continues to dominate globally, HYBE produced approximately 1,397 tons of plastic in 2023—an amount accounting for 75% of the total plastic used by 11 major record labels in South Korea. Of this, 1,249 tons were used for album production, and 148 tons for merchandise. The total waste disposal fee should have been 275.83 million KRW, but due to the revenue underreporting, the company was billed just 149.64 million KRW.
The Korea Environmental Corporation did not detect this issue initially and issued an incorrect bill in April 2024. After receiving payment in May, the discrepancy was raised by Park Jeong’s office, leading to an additional bill for the unpaid 125.12 million KRW being sent to HYBE.
A representative from Park Jeong’s office commented, “Large entertainment companies like HYBE have increasing plastic waste every year, but the fees don’t rise accordingly. We’ve been pushing for greater accountability. The corporation has requested that HYBE pay the outstanding amount by the end of October.”
HYBE acknowledged the situation, stating, “An internal verification process is currently underway, and we will provide further details once the process is complete.”
The situation has raised concerns about waste management and environmental responsibility in the entertainment industry, particularly as K-pop albums and merchandise, which often use significant amounts of plastic, continue to drive massive sales worldwide.
This issue comes ahead of a scheduled appearance by HYBE’s COO, Kim Tae-ho, at a comprehensive National Assembly audit, where questions are expected to focus on HYBE’s operations, including ongoing controversies related to copyright and plagiarism involving its subsidiary, ADOR, and its artist, NewJeans.
