Petition Emerges from Netizens to Revoke HYBE’s ‘Top Company’ Title Due to Ongoing Internal Report Controversy

Petition Launched to Revoke HYBE’s ‘Top Company’ Status Amid Controversy

Korean internet users have initiated a petition on the National Assembly’s official website, urging the cancellation of HYBE’s prestigious ‘Top Company’ designation. Launched on October 31, 2024, the petition will gather signatures until November 30, 2024. This move emerges in the wake of ongoing controversies surrounding internal reports at HYBE.

The Catalyst: Internal Report Revelations

The controversy was sparked on October 24, 2024, when Representative Min Hyun-bae from the Democratic Party of Korea disclosed an internal report during the National Assembly Audit. This report allegedly contained derogatory remarks about other K-pop groups, including comments on personal attributes such as plastic surgery and height. The ensuing uproar has led to significant public scrutiny of HYBE.

Witness Testimony and Allegations of Workplace Bullying

Further escalating the situation, NewJeans’ Hanni was called to testify regarding claims of workplace bullying at HYBE on October 15. During her testimony, she expressed feelings of being “ignored,”citing a manager from another group instructing their members to “ignore Hanni.”

Growing Support for the Petition

As of November 4, 2024, the petition has amassed over 38,488 signatures. It references Representative Park Hong-bae’s demand for the revocation of HYBE’s ‘Top Company’ status during a National Assembly Health and Welfare Committee audit, which addressed the allegations of workplace bullying highlighted by Hanni.

Understanding HYBE’s ‘Top Company’ Designation

HYBE was awarded the ‘Top Company’ title in April 2024 by the Fair Trade Commission, recognizing its substantial assets exceeding 5 trillion KRW (around 3.85 billion USD) and its ownership of 16 subsidiaries, including notable names like Belift Lab and Pledis Entertainment. This designation not only marked HYBE as the first entertainment label to achieve ‘conglomerate’ status in South Korea but also brought it considerable tax advantages.

Concerns Over Government Transparency

The petition emphasizes that the Ministry of Employment and Labor has been unresponsive to demands for clarity regarding the investigation into HYBE’s internal issues. The petitioner, using the pseudonym ‘seaweed**,’ highlights that the lack of information suggests a failure on the part of the Ministry to uphold the integrity of the system.

“Despite receiving complaints and initiating investigations, the Ministry has not communicated the progress or timeline regarding the cancellation of the top company status. This negligence undermines the system’s credibility,”stated the petitioner.

Call for Action Based on Precedent

The petition further argues that there exists a precedent for revoking ‘Top Company’ status due to workplace bullying, referencing a similar case from April 2022. It demands immediate attention from the National Assembly, noting that inaction on such matters breaches established protocols.

Key Developments from HYBE’s Leadership

Representative Min Hyun-bae disclosed that the controversial internal report comprises approximately 18,000 pages. In a response to the growing controversy, HYBE’s CEO, Lee Jae-sang, publicly apologized on October 29, 2024, and assured stakeholders that the executive responsible for the report had been terminated. He clarified that the document was intended as a compilation of fan comments sourced from online platforms.

Petition to urge cancellation of the label's 'top company' designation. (Image via National Assembly website) — Petition to urge cancellation of the label’s ‘top company’ designation. (Image via National Assembly website)

Conclusion

The unfolding saga around HYBE underscores significant concerns about workplace culture within major entertainment entities in South Korea. As the public, lawmakers, and industry stakeholders continue to navigate this complex situation, the future of HYBE’s ‘Top Company’ status hangs in the balance.

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