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HYBE faces parliamentary review after petition over 'unethical' practices surpasses 50,000 signatures

Published: 13 Dec. 2024, 12:13 Updated: 13 Dec. 2024, 18:58

Condolence flowers sent by NewJeans fans to HYBE’s headquarters in Yongsan District, central Seoul, on Sept. 25, showing support for the girl group's demand for the reinstatement of Min Hee-jin as CEO of the subsidiary label ADOR. [NEWS1]

A petition against HYBE's "unethical and controversial" management practices has surpassed 50,000 signatures and will be reviewed by a parliamentary subcommittee to determine whether a formal hearing should be convened.

Titled “A Petition for a Hearing and Legislative Improvement to Address the Legal Loopholes Revealed by the Social Controversies of Major Entertainment Companies,” the petition was published on Nov. 15 on the National Assembly’s website.

The petitioner said the purpose of the petition is to “request a hearing to address the weaknesses in current laws revealed by the social controversies caused by HYBE and to propose the enactment of new laws for issues that cannot be regulated under existing legislation.”

Specifically, the petition raises questions about HYBE and its fan community platform Weverse being designated as a “Top Job Creator” by the Ministry of Employment and Labor. According to the petition, there are no records explaining why or how HYBE and Weverse received this certification, prompting calls for an investigation into the officials who made the decision and potential disciplinary actions.

The petition also highlights allegations that HYBE produced and distributed reports containing defamatory opinions about artists from its competitors, monetized its monopolistic platform Weverse, failed to properly report insider trading among its subsidiaries and engaged in other unfair business practices, such as inflating album sales figures.

Girl group NewJeans during a press conference on Nov. 28 in southern Seoul [JOINT PRESS CORPS]

Additionally, the petition demands investigations into allegations that HYBE attempted to lobby journalists, the inadequacies and poor quality of its ESG reports and HYBE's refusal to provide data on labor abuse issues to lawmakers.

Having exceeded 50,000 signatures within a month, the petition is now under review for referral to the relevant standing committee. Current regulations stipulate that petitions receiving more than 50,000 signatures within 30 days must be referred to the Petition Review Subcommittee of the relevant standing committee. If deemed valid, the petition can be brought to a plenary session for discussion.

HYBE Chief Operations Officer Kim Tae-ho testifies at a National Assembly audit on Oct. 24. [NEWS1]

At a National Assembly audit on Oct. 24, HYBE Chief Operations Officer Kim Tae-ho was questioned about issues such as employee overwork-related deaths, violations of artists’ rights and an executive report titled “Weekly Music Industry Report,” which contained derogatory remarks about K-pop artists from other agencies.

NewJeans held a press conference accusing HYBE of harassing its members through “unethical and inhumane” means.

The group announced that it had cut ties with HYBE as of last month, reiterating that its contract ended on Nov. 28.

BY YOON SEUNG-JIN [[email protected]]