[theqoo] HYBE, WE DID COMMIT "ALBUM PUSHING" BUT.... MIN HEEJIN'S COURT RULING

- In 2023, 140,000 copies were sold with a conditional return basis, confirmed through HYBE’s internal audit
- Court: “Inflating first-week sales to promote chart rankings… an act that harms fair distribution and deserves criticism”
- ADOR and Min Heejin rejected the proposal: “It goes against our management philosophy”

It has been officially confirmed through a court ruling that HYBE operated the so-called “album pushing” (bulk buyback) practice to artificially inflate album sales figures. Although HYBE had publicly denied the practice, it was revealed that internally the company had already identified it through a self-audit and even established measures to prevent its recurrence.

On February 12, the Seoul Central District Court ruled in favor of former ADOR CEO Min Heejin in a shareholder agreement lawsuit between Min and HYBE. The subsequently released written judgment details HYBE’s album push-sales practices.

According to the ruling, in 2023 two albums under HYBE labels were each sold in quantities of 70,000 copies (140,000 copies in total) on a conditional return basis. Under this structure, albums were supplied to distributors at regular wholesale prices, but if unsold, HYBE would buy them back. Since distributors faced no risk of loss, they could purchase in bulk, and HYBE counted the entire quantity toward first-week sales figures. As a result, copies not actually sold to consumers were recorded as “sold.” The ruling explicitly states that “actual returns were confirmed.”

After former CEO Min raised the issue, HYBE conducted an internal audit, confirmed the facts internally, and established company regulations to prevent recurrence, effectively acknowledging the existence of push sales.

Did Chairman Bang recommend it first?

The ruling also addresses who proposed the practice and how. According to statements from ADOR’s side, HYBE recommended that ADOR release NewJeans’ albums using the push-sales method. In particular, during the release of a CJ-distributed album, HYBE allegedly made a specific proposal to push 100,000 copies in order to surpass another artist’s first-week sales record.

Court: “An act that harms fair distribution and deserves criticism”

The court took a clear stance on the matter, stating: “Inflating first-week sales figures to promote chart rankings is an act that harms fair distribution and deserves criticism.” Article 26 of Korea’s Music Industry Promotion Act stipulates that manipulating album sales figures through false bulk buying is punishable by up to two years in prison or a fine of up to 20 million won.

source: https://www.spochoo.com/news/articleView.html?idxno=120916

original post: here

1. And now, articles are finally coming out ㅋㅋ Meanwhile outlets like Dispatch are still keeping their mouths shut ㅋ

2. The court officially admitted that HYBE is committing sajaegi and album push

3. You're telling me this is the first article released???

4. How does it make sense that this is the only article we got?

5. They're raising idol groups who all commit sajaegi and album push, even BTS' results can't be trusted

6. HYBE and the media are so poisonous. How is this the only article we got?

7. F*ck off from K-pop

8. The cancer of K-pop

9. Seriously we need to investigate them through and through

10. They're all sajaegi-dols