K-netizens notice HYBE's subsidiaries reporting large deficits

AKP STAFF

HYBE has been at the center of continuous online discussions due to a series of ongoing controversies.

Recently, Korean netizens turned their focus to the financial performance of HYBE's subsidiaries after HYBE reported a net profit of 1.4 billion KRW (~995,382 USD) when the company reportedly earned a revenue of 527.8 billion KRW (~375.3 million USD) in Q3 2024.

One netizen shared the list of revenue and net income of each subsidiary in a popular online community where other netizens took notice of the large deficit each company reported.

HYBE Subsidiaries Financial Overview (The companies with deficit reports)

HYBE America
- Revenue: 158.2 billion KRW (~112.4 million USD)
- Net Income: -49.9 billion KRW (-35.5 million USD)

Weverse
- Revenue: 177.8 billion KRW (~126.4 million USD)
- Net Income: -11.7 billion KRW (-8.32 million USD)

UMG
- Revenue: 200 million KRW (~142,168 USD)
- Net Income: -6.5 billion KRW (-4.6 million USD)

KOZ Entertainment
- Revenue: 29.7 billion KRW (~21.1 million USD)
- Net Income: -1 billion KRW (-710,841 USD)

HYBE Labels Japan
- Revenue: 11.1 billion KRW (~ 7.89 million USD)
- Net Income: -1.7 billion KRW (-1.21 million USD)

HYBE IM
- Revenue: 46.4 billion KRW (~32.98 million USD)
- Net Income: -31.4 billion KRW (-22.3 million USD)

Weverse America
- Revenue: 7.8 billion KRW (~5.55 million USD)
- Net Income: -3.1 billion KRW (-2.2 million USD)

SUPERTONE
- Revenue: 2.2 billion KRW (~1.56 million USD)
- Net Income: -7.8 billion KRW (-5.55 million USD)

BINARY KOREA
- Revenue: 270,000 KRW (191.92 USD) (not a typo)
- Net Income: -3.3 billion KRW (-2.3 million USD)

Latin America
- Revenue: 200 million KRW (~142,167 USD)
- Net Income: -2.3 billion KRW (-1.63 million USD)

Latin America Mexico
- Revenue: 400 million KRW (~284,310 USD)
- Net Income: -5.9 billion KRW (-4.2 million USD)

Korean netizens were baffled by the report, wondering how so many of the subsidaries can be losing money.

Korean netizens commented:

"It's so obvious that the money is leaking somewhere."

"The person responsible for pushing HYBE America should be held accountable. If they’re still holding on to their position, isn’t that a cartel?"

"Shouldn’t HYBE undergo a full investigation at this point?"

"No wonder they posted such a low net profit."

"No matter how incompetent you are, is that level of loss even possible? It’s way too suspicious."

"I can understand Weverse, but what’s up with the rest?"

"I get that Weverse is a fan service platform, but I really can’t understand why HYBE America was even pursued. Seriously, what were they thinking?"

"The shock of seeing that 270,000 KRW revenue made me forget everything else."

"If they got investigated, I bet so many strange things would come to light."

"They keep acquiring these unknown companies, yet look at those performance results. Where is all this money leaking out to?"

"This is another reason why a tax audit is necessary."

"At this point, are they creating subsidiaries just to make it easier for someone to siphon off money?"

"Shouldn’t they also be looking carefully at how payments are actually being settled here? So much money goes out under 'fees' and commissions."

"It’s like the executives are siphoning money into subsidiaries, creating a personal fund under the guise of salaries, just to make themselves rich."

"Why are there so many unnecessary subsidiaries, and why are they all in the red?"

"BELIFT LAB is generating more revenue than ADOR. Isn’t HYBE supposed to be doing well in the U.S.?"

"How is Weverse running at a loss? They’ve gathered so many artists there."

"I’m curious to see how much more loss they’ll incur if NewJeans leaves."

"All the executives should resign. With that level of operational ability, they should step down even without this scandal."

"HYBE America and their gaming division are showing major losses."

"I looked into Binary Korea, and it seems to be a platform development company."

"I still don’t understand why Weverse is continuously losing money, especially when they keep adding more artists."