In a shocking revelation, reports from a Korean news source have surfaced indicating that HYBE, the powerhouse behind K-pop phenomena like BTS, is charging its labels a substantial “tuition fee” for services, with the notable exception of its flagship label, BIGHIT MUSIC. This alarming practice has sparked demands from concerned citizens, who suspect these financial practices may border on racketeering.

According to a report released on November 6, 2024, HYBE allegedly collected around ₩15.7 billion KRW (approximately $11.4 million USD) in 2023 alone from ADOR, the label managing the rise of NewJeans. This amount is earmarked for music distribution and various service charges, which many are calling an unjustified “tuition fee” for artist development. Comparatively, ADOR’s reported intercompany revenue stands at approximately ₩3.10 billion KRW (about $2.24 million USD)—a stark contrast that raises eyebrows over the rationale behind such fees.

Source Music and BELIFT LAB, two other labels under the HYBE umbrella, also reported significant payments—₩11.0 billion KRW (around $7.95 million USD) and ₩14.4 billion KRW (about $10.4 million USD) respectively. Their intercompany revenues were significantly lower at ₩3.50 billion KRW and ₩9.30 billion KRW, illustrating a troubling trend across HYBE’s subsidiary companies.

The exemption of BIGHIT MUSIC from these charges raises further questions. Industry insiders suggest that this could be attributed to the massive commercial success of BTS, stating, “Given that BTS has delivered unparalleled results and consistently dominated the Billboard charts, it stands to reason that the fee would be waived for them.” This disparity in treatment has incited claims of favoritism, leading observers to accuse HYBE of exploiting its other labels and their artists.

Furthermore, an insider highlighted that the apparent “unclear operational standards” within HYBE have led to tensions, referencing the public disputes within the company. Critics argue that what was initially branded as a strategy to encourage competition and growth through a multi-label approach has devolved into questionable practices lacking coherent compensation standards.

As public outrage swells, demands for a tax audit of HYBE are intensifying. Many netizens are vocalizing their discontent, with comments ranging from disbelief to calls for reform. One user remarked, “What kind of ‘tuition’ costs over ₩10.0 billion KRW? It’s insane!” Another quipped, “Is HYBE running a private school or what?” The sentiments echo a broader frustration over perceived manipulation of financial practices within the company.

In a remarkable show of collective action, a petition aiming to revoke HYBE’s status as a “Top Enterprise” has gone viral, racking up over 47,284 signatures—95% of its goal. This petition is seen as a crucial step toward initiating a formal investigation into HYBE’s financial dealings.

As more details emerge and public scrutiny intensifies, the future of HYBE’s business practices hangs in the balance. Will the company address these allegations and restore trust among its labels and artists? Only time will disclose whether this K-pop giant can turn the tide on its controversial “tuition fees” and maintain its empire amidst rising calls for accountability.