HYBE, the powerhouse behind K-pop sensations like BTS and TXT, has seen its assets soar to 5.34 trillion won by the end of 2023, marking a significant 9.8% increase compared to 2022.
The Korea Fair Trade Commission is considering designating HYBE as a conglomerate, a status conferred to companies with fair assets surpassing 5 trillion won. This calculation encompasses the total assets of general affiliates and the capital of financial affiliates, combining 16 entities including Weverse Company, Big Hit Music, and Pledis Entertainment.
If designated as a conglomerate, HYBE will face disclosure obligations under the Fair Trade Act and additional measures to regulate internal transactions, including restrictions on ownership and stock holdings by family members of executives.
While HYBE was close to meeting conglomerate criteria in 2023, it narrowly missed the threshold in 2022. The commission will announce this year’s designation results on May 1st, with anticipation mounting inside the industry regarding HYBE’s potential historic designation as the first entertainment conglomerate.
Looking ahead, there’s ongoing speculation about future criteria for conglomerate designation. The Fair Trade Commission is considering transitioning from asset-based criteria to linking it to GDP, aiming for a range between 0.25% to 0.3% of GDP.
