[theqoo] THE REASONS WHY HYBE IS GOING UNDER SPECIAL TAX INVESTIGATION

The things that were revealed since March of last year

They are finally doing their work

1. Bang Sihyuk omitted his 36.5 B won (~$27 M USD) mansion in the U.S.

2. The ADOR-HYBE IM fee was 500 M KRW, but after CEO Min Heejin left, it was reportedly omitted and increased to 4.1 billion KRW

3. The reported sales figure omitted the 3 zeros ('000) 2.178 trillion KRW was reported as just 21,780,900 KRW

4. A subsidiary owned 100% by former CEO Park Ji-won was omitted

5. Tuition payment (inter-company transaction between affiliates)

Summary: All HYBE labels except BigHit Music pay "tuition fees" to HYBE for services like distribution. In 2023, ADOR (NewJeans) paid 15.7 B KRW (over 5x its internal sales) with Source Music (LE SSERAFIM) paying 11B KRW, about 3x.

And today's article

Meanwhile, an official from the National Tax Service said, "We cannot disclose specific information about tax investigations. We ask for your understanding."

Another official from the National Tax Service said, "This unscheduled tax audit will not focus solely on investigating unfair practices in the stock market by major shareholders and senior executives. Instead, it is likely to conduct a comprehensive investigation into various issues, including whether there has been tax evasion (such as offshore tax evasion or transfer pricing manipulation) of profits generated by overseas subsidiaries in countries like the United States, Japan, and Southeast Asia, the appropriateness of tax handling for affiliated artists, and the status of internal transactions between related parties and subsidiaries."

"The National Tax Service announced on that day that it would conduct a large-scale tax investigation targeting 27 companies involved in "stock price manipulation." It appears that HYBE is included among the 27 companies. The National Tax Service estimated that the total amount of tax evasion by the 27 companies would reach 1 trillion won, and it is presumed that a significant portion of this amount is related to HYBE."

original post: here

1. Empty them all

2. I hope that NewJeans can leave unscathed🤭🤭🤭

3. Instead of hating on NewJeans, you guys should be nagging HYBE insteadㅋ What did NewJeans do that you guys have so much to say about them?... when HYBE is this severe

4. They are doing all sorts of thingsㅋㅋ How can they have so many scandals? Seriously f*cking lame

5. I feel bad for NewJeans, they were used like this and people want them to still work with this company?

6. I seriously hope that they get emptied of everything. This entertainment company is the devil

7. They omitted so many things

8. I hope my bias leaves soon

9. So people are hating on NewJeans even under a post like this. That's why people find you guys so disgusting

10. NewJeans are pitiful. It seems like they finally have an escape now. They should not stay in a company like this

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