“Avoiding Misinformation” — COO Kim Tae-ho Apologizes for HYBE’s Statement During National Assembly Audit

During the annual audit of the National Assembly on October 24, 2024, Kim Tae-ho, the COO of HYBE and the CEO of BELIFT LAB, expressed regret over the leakage of a company document containing offensive remarks aimed at K-pop idols. He emphasized that these remarks did not represent HYBE’s official stance, but were merely collections of fan expressions sourced from online platforms.

According to reports from Electronic Times, the audit session initially concluded but was reopened later that day. This re-examination followed Kim Tae-ho’s formal declaration on behalf of HYBE, in which he stated that those responsible for disseminating the document would be held accountable. This led to further inquiries from the National Assembly directed at the HYBE COO regarding his comments.

Min Hyung-bae, a representative from the Democratic Party, pointed out that the phrase “hold accountable to the end”in the company’s statement appeared to be a veiled threat. Meanwhile, People Power Party representative Park Jeong-ha pressed Kim Tae-ho on whether the company was undermining freedom of speech and dismissing the authority of the National Assembly.

“I am worried about the statement that says, ‘We will hold accountable to the end those who leaked it to the outside.’ This phrasing is quite threatening and suggests a suppression of open discussion and debate without a clear position from them on this matter,” stated Representative Park Jeong-ha.

Kim Tae-ho later reiterated his regret for making the statement during the ongoing audit, saying:

“It was inappropriate for me to issue a statement amid the audit. I sincerely apologize for that. We were trying to address numerous media inquiries and prevent misinformation from circulating within the community, not to undermine the National Assembly. I deeply apologize once again.”

HYBE COO Kim Tae-ho issues an apology. (Image via X/@luenacore)

Kim Tae-ho Clarifies No Investigation Will Occur

It’s noteworthy that during the National Assembly audit, Kim Tae-ho addressed the origins of the contentious comments, leading to the conversation being closed. However, he later apologized for his hasty decision to warn about potential actions against those who leaked the documents.

Kim assured the assembly that the official statement regarding the leakage of potentially disparaging comments about K-pop idols was issued to implement “necessary measures”aimed at safeguarding its artists. Electronic Times cited Kim saying,

“I believe necessary measures must be taken. We will thoroughly evaluate the relevant issues, accept responsibility, implement appropriate actions, and subsequently share our findings. I think the headquarters intended to clarify aspects that did not align with reality but acknowledge that this should have been handled differently. We will reflect on and amend the points highlighted.”

Additionally, reports from Electronic Times on October 24, 2024, revealed that another critical concern emerged during the audit regarding the practice known as sajaegi, where companies encourage excessive album purchases through unique gifts and incentives, like rare photo cards or fan meeting access.

During the audit, Democratic Party representative Min Hyung-bae argued that such marketing strategies promote unhealthy spending habits among consumers and can be seen as manipulative. Recent allegations suggest that HYBE may have engaged in these practices to artificially inflate album sales by distributing larger volumes of albums, some of which had a return policy.

Despite the assembly’s reluctance to name specific idol groups, they requested that BELIFT LAB CEO Kim Tae-ho address the situation. He responded by stating,

“Earlier this year, we conducted an internal audit in response to concerns raised about this issue. We found that a small percentage of the albums sold last year were part of a returnable sales structure. We are implementing regulations to ensure that such sales practices do not occur in the future.”

In related news, HYBE has faced criticism for allegedly attempting to undermine SM Entertainment’s new boy band, RIIZE, in order to protect its own group, TWS. Claims have emerged suggesting that HYBE leveraged Seunghan’s smoking incident from November 2023, based on assertions made by a few online users.

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