BTS’ Label HYBE Becomes First Entertainment Company To Earn Chaebol Status Amid Feud With ADOR

Explore how HYBE, the label behind BTS, achieved chaebol status amid a feud with ADOR. Learn about K-pop’s global impact and the significance of this milestone.

Introduction

In a groundbreaking development, HYBE, the entertainment company behind the global K-pop sensation BTS, has achieved a significant milestone. On May 15, 2024, HYBE officially became the first entertainment company in South Korea to be designated as a major corporate group, earning the prestigious status of a chaebol12. This designation marks a pivotal moment for the company and reflects the immense impact of K-pop on the global entertainment industry.

The Significance of Hybe's Designation

HYBE’s journey to chaebol status is closely tied to the phenomenal success of BTS and other K-pop acts. Let’s explore the key points:

1. Global Popularity of K-pop: K-pop has transcended borders, captivating audiences worldwide. BTS, with its chart-topping music, electrifying performances, and dedicated fan base (known as the ARMY), has been at the forefront of this cultural phenomenon. The revenue generated from albums, concerts, merchandise, and digital platforms has contributed significantly to HYBE’s growth.

2. Bang Si-hyuk: The founder and chairman of HYBE, Bang Si-hyuk, holds a substantial stake in the company (approximately 31.57% of HYBE’s shares). His visionary leadership and strategic decisions have propelled HYBE’s ascent. Notably, Bang Si-hyuk has been recognized as the ‘head of the business group’ (chaebol), a title rarely bestowed upon entertainment industry leaders.

3. Two Related Individuals on the Chaebol List: The chaebol designation system was introduced in 1986. For the first time, two related individuals—Bang Si-hyuk and his relative Bang Joon-hyuk, who chairs Netmarble—have appeared on the chaebol list together. This underscores the family ties and interconnectedness within HYBE’s corporate structure.

The Ongoing Feud with ADOR

HYBE’s journey to chaebol status has not been without challenges. The company has been embroiled in a bitter feud with its subsidiary, ADOR. Here are the key points:

• Audit Against ADOR: In April 2024, HYBE initiated an audit against ADOR’s CEO, Min Hee-jin. The audit alleged that ADOR’s management devised a plan to gain complete control of the sub-label, leaked sensitive information, and attempted to tarnish HYBE’s reputation and that of its artists.

• Min Hee-jin’s Response: In a press conference, Min Hee-jin shared her side of the story, countering HYBE’s accusations. The feud has intensified, drawing attention from fans, industry insiders, and regulatory bodies.

HYBE’s designation as a chaebol signifies its emergence as a major player in the entertainment landscape. As BTS continues to break records and inspire millions, HYBE’s journey remains closely intertwined with the global K-pop phenomenon. The feud with ADOR adds drama to this unfolding narrative, but one thing is clear: HYBE’s star is shining brighter than ever.

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