[theqoo] HYBE IM, 4 BILLION INTERNAL TRANSACTION WITH ADOR IN DISPUTE (NEWJEANS' SALARY ISSUE)

There are concerns that HYBE, aiming to transform into a comprehensive entertainment platform, may be inflating new business revenues through internal transactions among its subsidiaries. This comes after its gaming and software subsidiary, HYBE IM, recognized 4 billion won (2.9M) in sales from another subsidiary, ADOR.

According to industry sources on the 17th, HYBE IM and ADOR reported 4.2 billion won in internal transactions between the two companies for the third quarter of this year, as disclosed at the end of September. HYBE IM accounted for 4.1 billion won in sales from ADOR, while ADOR only recognized 900 million won in sales from HYBE IM.

The only explanation given by both companies for their transactions is that they are related to game royalties. However, there are suspicions in the market that HYBE may be inflating new business revenues by leveraging ADOR, which has seen a surge in sales thanks to the group NewJeans.

Typically, if artists from a label under HYBE appear in a game, the subsidiary would recognize revenue for copyright royalties and similar purposes. However, in the case of the transaction between ADOR and HYBE IM, it is the opposite; ADOR is essentially using HYBE IM's game service and paid for it.

HYBE IM updated its services last August by featuring NewJeans in its game "Rhythm Hive." Given that NewJeans is under ADOR and HYBE IM utilized their intellectual property, one would expect that the revenue should have been recognized by ADOR instead.

A market insider noted, "HYBE is already trying to generate hundreds of millions of won in quarterly sales from ADOR, yet the still-establishing HYBE IM is recognizing revenue for unclear transaction purposes. If this structure continues, it could lead to issues such as a reduction in the amounts that artists should be compensated."

A HYBE representative stated, "It is difficult to confirm specific details regarding the internal transaction disclosures."

source: https://dealsite.co.kr/articles/129742

original post: here

1. Wow f*ck so they just took off 4 billion just like that? Under what pretext??

2. They're just using ADOR to generate money for their gaming company ㅋㅋㅋㅋㅋ

3. Hul?? They're thugs 

4. Wow ㅋㅋㅋㅋㅋㅋㅋㅋㅋ HYBE is f*cking scary 

5. If they made money by using NewJeans, shouldn’t they be the ones paying for it? Someone should reach out to the Fair Trade Commission about this

6. So they're not only using the fangirls' money, but straight up their artists' salary... 

7. F*cking weirdos...

8. NewJeans need to cancel their contract renewal right now 

9. And you think the other artists will be fine? ㅠㅋㅋ this is what people should be worried about... 

10. Thieves

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