HYBE to become the first entertainment firm on FTC's 'large business group' list

HYBE Chairman Bang Si-hyuk attends a Bloomberg conference in the United States on Oct. 13, 2023 [YONHAP]

HYBE will become the first entertainment company to be classified as a "large business group" by the antitrust regulator as its assets have surpassed 5 trillion won ($3.7 billion).

The Fair Trade Commission (FTC) will reportedly apply the designation to HYBE, which is behind K-pop sensations BTS and NewJeans, as its total assets last year reached 5.35 trillion won, up 9.8 percent from a year earlier, according to local media reports on Monday.

The FTC annually announces a newly updated list of large business groups with assets of five trillion won as part of its efforts to monitor equity investments and inter-affiliate loan guarantees. The list is expected to be announced in late April.

The assets include those of its affiliated companies and the total capital of financial affiliates.

HYBE’s assets included those of its 16 affiliates, including web platform Weverse Company, BigHit Music and Pledis Entertainment.

Overseas expansion of its portfolio is seen to have contributed to the company’s asset growth, including its acquisition of Ithaca Holdings in 2021 and Atlanta-based hip-hop label agency QC Media Holdings last year.

HYBE’s revenue in the first quarter is projected to come in at 392 billion won, down 5 percent on-year, according to a report from Hana Securities on Monday. Its operating profit is expected to have plunged 78 percent over the same period to 11.5 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]