Hybe faces potential revocation of ‘Top Job Creation Company’ status amid petition, allegations

Minister of Employment and Labor Kim Moon-soo (left) poses with Hybe CHRO Kim Ju-young during a "2024 Korea Top Job Creation Company" ceremony held in Seoul, on Sept. 5. Hybe was selected as one of the 100 companies recognized by the government. (Hybe)

Hybe, the K-pop powerhouse behind BTS, is at risk of losing its designation as a "Top Job Creation Company” by the Ministry of Employment and Labor, following a public petition filed Thursday with the National Assembly.

As of Tuesday, just six days after the petition launched, the National Assembly’s online petition site showed over 41,500 signatures supporting the revocation of Hybe’s recognition. With a threshold of 50,000 signatures needed for an official review and 24 days remaining, the petition is likely to reach the required number, prompting a reevaluation of Hybe’s designation.

The petitioner stated, “The aim of this petition is to uphold the integrity and sustainability of the system established to foster talent and a collaborative labor-management culture by revoking Hybe’s designation due to recent workplace harassment allegations against the company.”

On Oct. 15, NewJeans member Hanni testified as a reference witness at a National Assembly audit of the Environment and Labor Committee, alleging ostracism by a manager at a Hybe subsidiary amid ongoing conflict between Hybe and former Ador CEO Min Hee-jin. Rep. Park Hong-bae of the main opposition Democratic Party of Korea also called for the revocation of Hybe’s status as a "Top Job Creation Company" due to these allegations, during the audit. The Ministry of Employment and Labor responded that Hybe’s selection was “decided fairly,” while noting that a complaint has been filed and an investigation is ongoing.

Adding to the controversy, Rep. Min Hyung-bae disclosed an internal Hybe document during an Oct. 24 audit containing disparaging remarks about idols’ appearances and personalities, which triggered further public backlash.

This led fans of Hybe-affiliated K-pop groups to join the petition. K-pop boy band Seventeen’s fandom, Carat, has been particularly active, urging fans to support the petition via social media. Their call was amplified after Seventeen’s member Seungkwan shared a lengthy message on Oct. 29, expressing disappointment and frustration over the recent revelations.

An online petition calling for cancellation of Hybe's designation as "Korea Top Job Creation Company" on National Assembly's website, Tuesday (National Assembly's online petition website)

Hybe and its subsidiary Weverse Company were recognized as a “Top Job Creation Company” on Sept. 5, for their contributions to employment and job quality improvements in entertainment and IT.

If revoked, Hybe would lose associated benefits, including a presidential certificate, employment tax credits, expedited immigration processing, deferred tax audits, favorable credit evaluations and visa privileges. The labor ministry has stated that companies facing social controversy, media scrutiny, lawsuits, or filed complaints are subject to review, with a potential for revocation.

Meanwhile, Hybe reported a drop in third-quarter revenue and operating profit Tuesday. The K-pop powerhouse revealed its provisional third-quarter operating profit at 54.2 billion won ($40.3 million), down 25.4 percent from the same period last year. Revenue stood at 527.8 billion won, a 1.9 percent decline year-on-year, with net profit plummeting by 98.6 percent to 1.4 billion won.

By Kim Jae-heun(jaaykim@heraldcorp.com)