HYBE Revealed To Owe $90,000 To The Government After Trying To Cheat The System
It was recently revealed that HYBE owes around ₩125 million KRW (about $90,500 USD) to the government in waste disposal charges. They produced around 1397 tonnes in plastic in 2023. Of the plastics produced last year, 1,249 tonnes (89%) were used to produce albums for singers, and 148 tonnes (11%) were used to produce merchandise.
In South Korea, materials that are difficult to recycle, including plastics, need to be paid for when disposed of. This waste charge is handled by importers and manufacturers such as HYBE and various entertainment companies. They need to report sales, emissions, and other evidentiary materials for the year in order to be calculated by the government through the environmental department.
It was revealed that HYBE under-reported their sales numbers in order to pay less in disposal fees. According to their financial statements, sales for 2023 were around ₩2.18 trillion KRW (about $1.58 billion USD), which results in ₩276 million KRW (about $200,000 USD) in disposal fees. HYBE input their sales as ₩2.18 billion KRW (about $1.58 million USD) instead, resulting in fees of ₩150 million KRW (about $108,000 USD) instead.
The government only recognized this months later in October 2024, after the initial bill in April. They have sent an additional bill to HYBE for the unpaid ₩125 million KRW (about $90,600 USD).
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