HYBE initially threatened to hold those responsible for leaking internal documents during a national audit, only to delete their statement later.

On the afternoon of October 24, a comprehensive audit took place at the National Assembly’s Culture, Sports, and Tourism Committee in Yeouido, Seoul. HYBE's COO and CEO of Belift Lab, Kim Tae Ho, attended as a witness to address recent controversies and new allegations.

During the audit, an internal HYBE document titled "Industry Trend Review" came under scrutiny for its evaluations of idols’ appearances. Shared through internal emails, the document contained statements like “The plastic surgery is too extreme,” “They debuted the group when the members were at their ugliest—none of them look like idols,” and "The other members are shockingly unattractive. It's very clear why they haven't succeeded." It also included appearance critiques of idols from rival companies like SM and JYP. Democratic Party Representative Min Hyung Bae raised concerns, saying, “The content is crude and explicit, filled with insults and appearance evaluations.”

Kim Tae Ho responded, "I don’t recall the specifics of the document," and clarified, "We review a large volume of such monitoring materials. This is not HYBE’s official stance or opinion, but rather a collection of online posts."

After the report, which contained blunt language, was revealed during the audit, HYBE released a statement on its official website. It explained, "The monitoring report disclosed at the National Assembly’s audit on the 24th compiles various reactions and opinions from fandoms and the industry. It was created by directly quoting community and social media responses for internal reference and does not represent HYBE’s stance."

HYBE added, "The report also includes positive feedback from fans, which we as an entertainment company should take into account. We will hold those who selectively edited and leaked only the provocative content accountable, as it falsely suggests that HYBE created a document criticizing artists."

However, the statement was soon deleted after receiving strong criticism.

During the audit, Representative Min Hyung Bae questioned Kim Tae Ho about the statement, asking, "What did you mean by saying you would hold those who leaked the document accountable?" Kim Tae Ho responded, "I was unaware of the statement, and I did not instruct anyone to release it during the audit."  Representative Min criticized this approach, saying, "This audit is conducted under the authority of the Constitution and law. Such a response is inappropriate." The chairman of the Culture, Sports, and Tourism Committee, Jeon Jae Soo, also criticized the action, stating, "Stating the audit undermines the process. Do you think the National Assembly is so trivial?"

Later, when the audit resumed, Kim Tae Ho issued an apology, admitting, "Releasing a statement during the audit was a mistake. There was no intention to undermine the authority of the National Assembly." He explained, "Due to the overwhelming number of media inquiries and the spreading of distorted information online, we issued the statement to respond quickly. However, we have no intention of identifying or pursuing the internal leaker. Please don’t worry about that."

Earlier, Kim also addressed questions about plagiarism allegations involving Belift Lab’s girl group ILLIT and accusations of HYBE manipulating album sales, stating, "The plagiarism claims are false, and we did not engage in album chart manipulation."

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