HYBE Allegedly Siphoned Off NJZ’s (NewJeans) Contract Fee To Another Subsidiary
As HYBE‘s troubles with the South Korean authorities continue to expand, some of the alleged findings in the process has left netizens disturbed.
Recently, it was reported that the company was among the 27 entities under investigation by the National Tax Service for tax evasion and stock market manipulation. On July 29, KST, the Seoul National Tax Service’s Investigation Bureau 4 deployed investigators to HYBE’s headquarters in Yongsan, Seoul, without any prior notice to collect data for the investigation.
Now, a legal document has surfaced on the internet, showing that HYBE most likely illegally siphoned off money from NJZ‘s (NewJeans) collaboration with PUBG: Battlegrounds.
The document showed that out of the ₩10.0 billion KRW (about $7.19 million USD) contract fee with Krafton, HYBE’s subsidiary quietly skimmed off around ₩4.10 billion KRW (about $2.95 million USD). But once the company was caught, they issued a correction notice and returned about ₩1.60 billion KRW (about $1.15 million USD). The data shown in the document were consistent with previous reports of HYBE “stealing” from ADOR to inflate the revenue of HYBE IM.
HYBE Suspected Of “Stealing” ADOR’s Funds To Inflate Other Subsidiary Revenue
According to some users on community sites, the siphoned-off amount was originally ₩500 million KRW (about $360,000 USD) but increased to 4.1 billion after Min Hee Jin left her post as ADOR’s CEO.
This incident is reportedly one of the many cases being reviewed by the Investigation Bureau 4 at the moment.
The legal document has triggered huge backlash against HYBE, with some even unable to believe that the case was real.
- “Whoa. Is this real or fake?”
- “Is this real? D*mn.”
— “If this is real, they’re f*cking gangsters. Why is there nothing likable about that company?” - “Why are they taking away so much money?”
- “With Min Hee Jin gone, they thought they could just do anything.”
- “Whoa…”
