On Thursday, October 24, 2024, Yonhap News reported that HYBE Corporation is under investigation due to accusations of album pushing. During a state audit conducted by the National Assembly’s Culture, Sports, and Tourism Committee, HYBE’s Chief Operating Officer, Kim Tae-ho, was called to testify regarding allegations of manipulating album sales, commonly referred to as ‘sajaegi.’
Min Hyung-bae, a representative from the Democratic Party of Korea, alleged that the label had sold some albums with a return option while the total number of shipped albums was reported as “initial sales”or “first-week sales.”It is significant that those albums returned to the company were not accounted for in the total figures.
In response, Kim Tae-ho acknowledged the concerns raised and confirmed that an internal audit had taken place. He admitted that some albums had indeed been sold under a “returnable structure,”and added that HYBE has created new “guidelines”to prevent similar sales practices in the future.
“Earlier this year, concerns were raised, prompting us to conduct an internal audit. We found that a small percentage of last year’s sold albums included a returnable sales structure. To comply with company regulations, we’ve established guidelines to ensure this does not occur again,”he stated.
Investigations into Alleged Plagiarism and Derogatory Comments Against Idol Trainees
In further testimony, COO Kim Tae-ho, who also heads Belift Lab (a subsidiary of HYBE), addressed questions regarding claims of plagiarism against the rookie girl group ILLIT. He asserted that the allegations were unfounded and revealed that a criminal defamation lawsuit has been filed against Min Hee-jin, the former CEO of ADOR. He remarked:
“We firmly deny the claims. We have initiated both civil and criminal actions against former CEO Min Hee-jin (ADOR) for defamation. We look forward to the judiciary’s ruling and will present evidence to substantiate our position in court.”
To provide context, in April 2024, Min Hee-jin accused Belift Lab’s girl group ILLIT of copying choreography from ADOR’s own girl group, NewJeans. This incited significant backlash and ongoing plagiarism claims against ILLIT. By June 2024, reports emerged indicating that Belift Lab had filed a lawsuit against Min Hee-jin.
On October 11, 2024, Belift Lab defended ILLIT on their X account, asserting that Min Hee-jin’s accusations regarding plagiarism were baseless. They promised to present evidence in court that would disprove her allegations of copying NewJeans’ concept.
Additionally, during the same National Assembly audit on October 24, 2024, inappropriate comments allegedly made by HYBE employees about rookie idol trainees were highlighted. Representative Min Hyung-bae showcased data suggesting that derogatory remarks regarding the trainees’ appearances had surfaced.
Some of these comments referenced “extensive plastic surgery”related to certain trainees. When questioned by Min Hyung-bae, Kim Tae-ho clarified that these were not HYBE’s official opinions but a collection of remarks found on various online platforms.
“What was presented does not reflect HYBE’s stance or official assessment. It merely compiles comments from numerous online posts.”
Returning to the album pushing allegations, Minister of Culture, Sports and Tourism, Yoo In-chon, stated that as a global entity, the corporation’s sales practices would be thoroughly investigated.
This audit session was broadcasted live on Channel A Korea News via YouTube. During the session, a screenshot was shown revealing communications between HYBE’s management and a Japanese retailer, indicating that 250,000 albums were dispatched to Japan with a request for a return policy on 100,000 units should they go unsold.
Moreover, the label faced accusations of distributing albums during fan sign events to artificially inflate sale numbers. However, no specific K-pop group’s name was mentioned in connection with this activity.
In unrelated news, on October 17, 2024, Min Hee-jin was appointed as an inside director of ADOR following her dismissal as CEO on August 27. Kim Joo-young currently holds the position of CEO at ADOR since the same date.
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