Hybe Likely to Become 1st Entertainment Agency to Join League of Conglomerates

 

▲ This file photo shows the exterior of the headquarters of Hybe, the entertainment company behind K-pop superstars BTS. (Yonhap)

 

SEOUL, Apirl 11 (Yonhap) -- Hybe, which houses K-pop superband BTS is expected to be designated as a large enterprise group (public interest corporation group) for the first time among domestic entertainment companies.

 

According to Hybe's business report on the 10th, the company's assets at the end of last year totaled 53.457 trillion won, marking a 9.8% increase from the previous year.

 

In particular, with assets exceeding 5 trillion won, Hybe is now highly likely to be designated as a large enterprise, a first for the K-pop industry.

 

The Fair Trade Commission designates a public interest corporation group when the combined assets of general affiliates and the capital of financial affiliates exceed 5 trillion won.

 

Hybe's assets remained below 5 trillion won in previous years, with 4.7289 trillion won in 2021 and 4.8704 trillion won in 2022, keeping the company out of the public interest corporation group designation.

 

If Hybe is newly designated as a public interest corporation group this year, it will be subject to various regulations such as disclosure obligations and prohibition of unfair profits. Additionally, Bang Si-hyuk, the chairman and largest shareholder with a 31.57% stake, is likely to be designated as the same individual (leader).

 

Established as Big Hit Entertainment in February 2005, Hybe raised its stature from a small planning agency to a major player in the industry by launching the group BTS as a global superstar.

 

Hybe expanded its presence by acquiring Source Music (2019) and Pledis Entertainment (2020), and successfully listed on the KOSDAQ in October 2020. With a market capitalization exceeding 9 trillion won, Hybe ranks 45th overall in the KOSDAQ and is the top player in the entertainment industry.

 

Hybe surprised the industry by acquiring Ithaca Holdings in 2021, which includes global pop stars Justin Bieber and Ariana Grande.

 

Hybe expanded its business beyond K-pop by acquiring U.S. music labels QC Media Holdings and Exile Music last year.

 

In collaboration with Geffen Records, a subsidiary of Universal Music Group, Hybe launched the global audition 'The Debut: Dream Academy' and formed the girl group KATSEYE targeting the world stage.

 

In January (local time), Billboard ranked Bang Si-hyuk, the chairman, and Scooter Braun, CEO of Hybe America, 18th on the 'Billboard Power 100,' recognizing them as the most influential figures in the music industry.

 

All members of BTS, the top IP (intellectual property) of Hybe, have enlisted. Yet concerns were alleviated as junior groups such as Seventeen, Tomorrow X Together (TXT), and Enhypen gained popularity domestically and internationally, and so-called '4th generation girl groups' like NewJeans and LUCY achieved success. Thanks to them, Hybe surpassing 2 trillion won in consolidated domestic revenue for the first time last year.

 

Hybe continues to focus on diversifying its content by debuting boy group TWS and girl group ILLIT one after another this year.

 

CEO Park Ji-won of Hybe stated during a financial results announcement conference in February, "Hybe currently owns 12 labels in total, including 6 in Korea, 3 in the U.S., 2 in Japan, and 1 in Central and South America, with artists of different styles active in each label."

 

He further explained, "These multi-labels are designed to operate independently to reduce dependence on specific artists and labels, and to promote competition and cooperation between labels. We plan to further expand the artist pipeline in the future."

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