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ADOR Responds to HYBE’s Management Audit on CEO Min Hee Jin

HYBE’s decision to initiate a management audit of its subsidiary label ADOR has sent ripples through the K-pop industry, raising questions about the dynamics between the two entities and the future of their partnership. Since then, ADOR has addressed the label’s plans.

HYBE Initiates Management Audit on ADOR

Despite HYBE holding a controlling 80 percent stake in ADOR, recent developments have highlighted tensions between the label and its parent company. Reports surfaced on April 22 indicating that HYBE had detected efforts by ADOR to assert its independence, prompting concerns within the conglomerate. In response, HYBE took swift action, calling for a shareholders’ meeting to address the situation and hold the ADOR management accountable for their actions.

Founded in 2021 by industry veteran Min Hee Jin, ADOR quickly became synonymous with innovation and creativity, serving as the home for rising stars like NewJeans.

Central to HYBE’s concerns was the composition of ADOR’s leadership, with both current directors having joined the company alongside Min Hee Jin from SM Entertainment. In an effort to exert greater influence and oversight, HYBE sought to appoint an additional director from its own ranks, signaling a shift in power dynamics within the label.

Furthermore, reports circulated that HYBE had issued a document calling for Min Hee Jin’s resignation as CEO of ADOR, further complicating the situation and raising speculation about the future leadership of the label.

ADOR Responds to HYBE’s Plans

In response to these developments, ADOR issued a statement addressing the reports and affirming its commitment to transparency and cooperation with HYBE during the audit process.

“It appears that HYBE and BELIFT LAB along with Chairman Bang Si Hyuk think that simply driving CEO Min Hee Jin out of the company will end this issue without providing proper apologies or measures. However, ADOR will use all possible means and methods to protect the cultural achievements that NewJeans has worked for and to prevent further infringement due to copying. We want to make it clear that we cannot tolerate copying and various unfair actions continuing against ADOR and NewJeans,” it read.

The outcome of this audit and the subsequent actions taken by both parties will undoubtedly shape the future trajectory of ADOR and its relationship with HYBE, underscoring the complexities of navigating the competitive landscape of the K-pop industry.

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Lee Soo Man Sells His Remaining SM Entertainment Shares to HYBE

HYBE has acquired an additional 3.64 percent stake in SM Entertainment for 104.3 billion KRW (approximately 78.2 million USD). This marks a major shift in the company’s ownership landscape. This transaction involves all the remaining shares of SM Entertainment held by its founder and former chief producer, Lee Soo Man. With this development, Lee Soo Man will no longer have any stake in the agency he built in 1995, home to K-pop acts like aespa and NCT.

The backstory to this development has to do with a decision Lee Soo Man made last year. He decided to sell a 14.8 percent stake in SM to HYBE during a contentious battle for control of the company involving Kakao. This latest purchase involves his 868,948 shares going for 120,000 KRW each. This price was significantly above the current share price. This move is the result of Lee Soo Man exercising his put option. This right was agreed upon during their previous transaction in February 2023.

@iqtaehyun

i was SHOCKED when i saw this but it wont rlly affect the idols under sm. #leesooman #sm #smentertainment #nct #aespa #redvelvet #kpopfyp

♬ sad SpongeBob music – michael

HYBE now owns 12.6 percent of SM

Set to be finalized by March 7, this acquisition will increase HYBE’s stake in SM Entertainment to 12.6 percent. The initial purchase of Lee Soo Man’s shares was part of HYBE’s effort to gain a controlling interest in the agency, amounting to an investment of 422.8 billion KRW. But when Kakao emerged as the winner in the takeover battle, HYBE had to reduce its stake back to around 8 percent.

Kakao and Kakao Entertainment currently hold a combined 39.87 percent stake in SM. This means they’re the company’s largest shareholders. This intense battle reshaped the ownership structure of SM Entertainment and had significant repercussions for Kakao. Its chief investment officer, Bae Jae-hyun, is currently standing trial over allegations of stock price manipulation during the bid.

The sale of Lee Soo Man’s remaining shares to HYBE is a landmark moment in SM Entertainment’s history. It means the man who built the agency no longer has any ties to it as of this writing. As SM Entertainment turns the page, the rest of the industry is waiting to see how this development will change the K-pop scene in South Korea and beyond. – K-Pop News Writer

Featured Image: HYBE now has a larger ownership stake in the agency that was once one of its fiercest rivals. Source: X/@beyondthestarf.

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HYBE Becomes First K-Pop Agency to Achieve 2 Trillion KRW in Revenue

HYBE has become the first K-pop agency to cross the 2 trillion KRW revenue mark. With a reported 2.18 trillion KRW (1.67 billion USD) in earnings for 2023, this represents a 22.6% increase from the previous year. This financial milestone was propelled by strong album sales from NewJeans, SEVENTEEN, and TOMORROW X TOGETHER (TXT). Album sales alone accounted for 44.6% of the agency’s total revenue, an increase from 31.1% in the previous year. 

Together, these groups played a significant role in boosting HYBE’s album sales from its Korean artists, nearly doubling the total from 22.2 million units in 2022 to 43.6 million units. In Korea, SEVENTEEN led album sales with a staggering 15.9 million units, followed by TXT and NewJeans, who sold 6.5 million and 4.3 million albums, respectively. These numbers are from Circle Chart, which tracks sales only in Korea.

Hybe becomes 1st K-pop agency to top 2 tln won in annual sales

A bright spot

Revenue from the agency’s US-based record labels—Nashville’s Big Machine Label Group and Quality Control, an Atlanta-based hip-hop label the agency acquired in February 2023—grew 70% to 150 billion KRW (114.9 million USD). This accounts for nearly half of HYBE’s streaming revenue growth for the year. Meanwhile, streaming revenue from the agency’s Korean labels outside Korea also saw an increase of 102% to 107 billion KRW (81.9 million USD). This highlights HYBE’s global reach and the growing international demand for K-pop.

Concert revenue also experienced a substantial increase of 39.1% to 359.1 billion KRW (275 million USD). It accounted for 16.5% of HYBE’s total revenue, up from 14.5% in 2022. This indicates that 2023 was a big year for live performances. This growth was attributed to an increase in the number of concerts. HYBE had 125 concerts from seven touring artists in 2023, compared to 78 concerts from four touring artists in 2022.

Despite these successes, some revenue sources such as ads, appearances, content, licensing, and merchandise experienced declines. Thankfully, revenue from fan clubs emerged as a bright spot, showing a 35.9% increase to 91.2 billion KRW (70 billion USD).

QC Sold For $320 Million To Scooter Braun’s Company Hybe America

More good news

Here’s more good news: HYBE’s gross profit improved by 19.7% to 1 trillion KRW (773 million USD), though the growth rate was slightly lower than that of revenue. This was due to a 25.2% increase in the cost of sales. Nonetheless, the agency’s operating profit improved by 24.9% to 295.8 billion KRW (227 million USD), while its net profit rose by 288% to 186.5 billion KRW (143 million USD). This demonstrates effective cost management and operational efficiency.

Geographically, Korea’s share of HYBE’s revenue went from 33% in 2022 to 36% in 2023. Japan’s share also saw an increase, going from 28% to 31%. However, North America’s share dropped slightly. It fell from 32% to 26% despite the acquisition of Quality Control.

The fan community platform Weverse ended 2023 with 10.1 million monthly active users in the fourth quarter. This shows a slight decrease from 10.6 million in the third quarter but an overall year-on-year increase, as Weverse had only 8.5 million monthly active users in December 2022. The platform expanded its artist communities significantly, from 71 at the end of 2022 to 122 by the end of 2023.

eternal sunshine (label reactions)

HYBE is moving fast toward the future

Looking ahead, HYBE plans to expand its roster while promoting its existing artists. TWS has already debuted and is doing well, securing endorsement deals and music show wins. I’LL-IT and KATSEYE are also gearing up for their debuts. Meanwhile, HYBE America’s management division, Scooter Braun Projects, is poised for significant growth, especially with the upcoming release of Ariana Grande’s album Eternal Sunshine.

In addition to its financial achievements, HYBE also announced a shareholder value enhancement plan with a dividend of 700 KRW per share, totaling 29.2 billion KRW. This reflects the agency’s commitment to prioritizing shareholder value despite being in a growth phase.

HYBE CEO Park Ji-won believes the company’s dynamic and collaborative business model is a key driver of its success. “HYBE is moving fast toward the future with an unwavering vision. Our multi-label system allows each label to operate independently to reduce heavy reliance on certain artists or labels, and the labels compete and cooperate under the system,” he said. – K-Pop News Writer

Featured Image: Talk about record-breaking earnings! Source: The Korea Times.

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HYBE Employee Song Ju-young Reveals What BTS Is Really Like

We may think we know our favorite idols because we get glimpses of their personalities when we keep up with their music and other content. But how much of what we see is actually real? We may never know the answer to that. But there are people who do: the staff members who work with idols like BTS. For instance, HYBE employees get to know the members really well because they work behind the scenes.

These individuals, working tirelessly within the idols’ agencies, are privy to moments unseen by fans and media alike. This means they have a unique perspective on whether these celebrated figures are as genuine as they appear. One of them, Song Ju-young, a member of HYBE’s IT department, talked about his encounters with BTS on his YouTube channel. His stories offer a glimpse into what the members are really like without all the glitz and glamor.

가장 많이 받은 질문! BTS 본 적 있어요?

Memorable encounters

One memorable encounter involved Kim Seokjin, better known as Jin. Song Ju-young described BTS’s eldest member as “very  handsome and young-looking.” Recalling a time when he ran into Jin in the HYBE cafeteria, he shared that he went there to get a drink when he saw the idol. “I just nodded, then I realized he’s Jin from BTS!”

Song also shared his admiration for Kim Namjoon aka RM. Song shared that he often sees the BTS leader at the company gym. He praised RM‘s impressive physique, noting, “He’s so tall and his face is so small. He’s so handsome in person. His manly force is so amazing!”

Park Jimin was another member he spoke highly of. Despite Jimin‘s stature, Song said the 95-liner extends so much kindness to HYBE staff. “Among the BTS members, if I had to choose my bias, it’d be Jimin. His body is so pretty! Even with that small body, his body line is too pretty!”

이 노래로 ”입덕“했어요!!

The BTS members are genuine

Beyond their visuals, Song Ju-young was struck by the BTS members’ genuine personalities. He observed that their public image closely aligns with their true selves, a rarity in the entertainment industry. “They’re exactly as you see,” Song said.

ARMYs worldwide were touched by Song Ju-young’s insights. Everything he said about BTS further solidified their admiration for the group. After reading his comments, many were relieved to find that RM, Jin, SUGA, j-hope, Jimin, V, and Jungkook are actually as nice as they make themselves out to be. – K-Pop News Writer

Featured Image: Song Ju-young talks about different facets of life as a HYBE employee on his YouTube channel. Source: X/@jupiter_song.

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HYBE Reportedly Looking To Acquire SM Entertainment Again

Recent industry rumors have ignited speculation about HYBE Labels, the powerhouse behind BTS and other global K-pop acts, considering another move to acquire SM Entertainment. These rumors have surfaced amid reports suggesting that Kakao, the multimedia giant, may explore selling SM Entertainment, a claim Kakao has officially denied. The K-pop landscape has been buzzing with discussions surrounding potential acquisitions and their potential impact on the industry.

HYBE Labels Possibly Makes A New Move to Acquire SM Entertainment

The speculation gains context from last year’s headline-grabbing attempt by HYBE Labels to acquire SM Entertainment. The proposed deal, had it materialized, could have reshaped the K-pop landscape significantly. However, the deal fell through for various reasons, leading to a return to the drawing board for both companies.

Recent reports indicate that HYBE Labels might be considering a renewed effort to acquire SM Entertainment, potentially in collaboration with founder and former chairman Lee Soo Man. While Kakao has officially denied the rumors of selling SME, industry insiders are closely monitoring the situation, given the ongoing speculations.

Insiders suggest that other companies are also exploring the possibility of acquiring SM Entertainment, even after the reported breakdown of the deal with HYBE Labels last year. Rumors abound that HYBE chairman Bang Si Hyuk is personally approaching private equity funds with a proposal to acquire SM Entertainment. The involvement of key figures and the potential collaboration with Lee Soo Man adds layers to the unfolding narrative.

Further rumors suggest that Lee Soo Man, after selling a portion of his stake in SM Entertainment to HYBE, may seek to return to the label. This potential move raises questions about the dynamics between the founder and the company’s future direction. Additionally, companies like NCSOFT, F&F (a fashion company), and MGM (an American entertainment group) are reportedly exploring the prospect of acquiring SME.

The K-pop industry, known for its dynamism and strategic partnerships, remains in a state of flux as these rumors circulate. The potential acquisition of SM Entertainment by HYBE Labels or other entities could have far-reaching implications for the global music scene. As the situation develops, stakeholders and fans alike eagerly await official announcements that will shape the future of these entertainment powerhouses.

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HYBE Opens In-House Healthcare Center for Artists, Employees

HYBE, the entertainment agency behind BTS, SEVENTEEN, and others, has taken a groundbreaking step by establishing a healthcare center for its artists and staff. On January 25, the company announced the opening of this center within its 19-story office building in Yongsan, central Seoul. This initiative isn’t HYBE’s first effort to ensure the well-being of its people. HYBE has had a clinic since 2022, where an in-house nurse offered basic medication and consultations. Now, the company has kicked things up a notch.

The newly expanded healthcare center at HYBE now includes an additional nurse and an in-house doctor. HYBE artists and staff have access to a range of services, including prescription medications and emergency care. The facility has several specialized treatment rooms, one of which is specifically designated for trauma care. It also has a recovery room equipped for physical and heat therapy, an intravenous therapy room designed for fatigue recovery, and consultation rooms.

Dr. Kim Jun-ok, the new in-house doctor at the center, brings a unique skill set to HYBE. He’s a mental health professional who’s qualified to provide psychiatric treatment. He can also handle primary care for external and internal ailments. Best of all, he’s a musician with an extensive background in composition theory and orchestral conducting. This combination of medical and musical knowledge enables him to understand the unique challenges faced by those in the entertainment industry, whether they’re artists or part of the staff. His insight will be invaluable in providing top-tier care.

@thequeendarlah

HYBE Makes History: Unveils In-House Mini Hospital for Employees and artists Health!😱🤩✨️ #HallyuTalkPH #TiktoktainmentPH #EntertainmentPH

♬ Lo-fi hip hop – NAO-K

HYBE could establish a new benchmark

The healthcare center is open to all HYBE staff, trainees, and artists. It’s the first of its kind in the industry, representing a proactive response to the health-related hiatuses taken by K-pop artists, including those from HYBE and other agencies.

The fact that HYBE expanded its healthcare center could establish a new benchmark for artist welfare in the industry. This move highlights the importance of healthcare in a sector often criticized for overlooking mental and physical health. It could encourage other agencies to implement similar initiatives, leading to a shift in how the industry prioritizes the overall well-being of its artists and staff.

Moreover, having on-site healthcare centers may lead to a decrease in the length and number of breaks taken for health reasons. Easy access to quality healthcare means early detection and treatment of health problems, leading to quicker recoveries and less time away from the stage. – K-Pop News Writer

Featured Image: HYBE’s new in-house healthcare center may just be the beginning. Sources: Daum, HYBE.

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2AM Announces January 2024 Comeback with Bang Si Hyuk Involvement

2AM is set to make a full-group January 2024 comeback, creating much excitement among fans. This return is made in collaboration with HYBE Chairman Bang Si Hyuk, who has played a significant role in shaping the group’s trajectory and has been referred to as the “father figure” of 2AM.

2AM to Reunite with Bang Si Hyuk on January 2024 Comeback

Bang Si Hyuk’s involvement in 2AM’s musical journey dates back to their debut, where he has contributed to producing many of their hit songs, such as “Can’t Let You Go Even If I Die” and “You Wouldn’t Answer My Calls.” His collaboration with 2AM titled “Should Have Known” for their 2021 comeback with ‘Ballad 21 F/W’ was met with great success, marking the group’s first full-group return in seven years.

The anticipation for 2AM’s January 2024 comeback is heightened by Bang Si Hyuk’s reputation as a prolific producer, known for bringing out the best in artists and crafting emotionally resonant music. Fans are eager to see how the collaboration will result in a new musical chapter for 2AM.

To offer a sneak peek into their upcoming music, 2AM is scheduled to reveal their new song for the first time during the “2023 MBC Music Festival” on December 31. This high-profile performance, set to air at 8:30 PM KST, is expected to showcase 2AM’s emotive vocals and set the stage for their much-anticipated comeback in January 2024.

Having debuted in 2008 with the single “This Song,” 2AM quickly gained recognition and love for their ballad genre, also becoming the first ballad idol group. Over the years, their hits like “Can’t Let You Go Even If I Die,” “You Wouldn’t Answer My Calls,” “Confession of a Friend,” “How to Break Up Well,” and “I Was Wrong” have solidified their position in the industry.

Since their full-group comeback in 2021, 2AM has remained active, releasing official and project songs, including “Close but Far,” “Should Have Known,” “Love, That’s It,” and “I Hate Everything but You.” The group’s enduring popularity and the promise of new music also make their January 2024 comeback a highly anticipated event in the K-pop landscape.

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HYBE Artists Win Big at Mama Awards 2023

HYBE-affiliated artists dominated the 2023 MAMA Awards, with K-pop groups BTS, SEVENTEEN, and NewJeans taking home the big prizes for the prestigious two-day event held in Japan. 

For those unfamiliar, the MAMA Awards, which is organized by CJ ENM, primarily celebrate outstanding achievements in the music industry, and put the spotlight on K-pop talents. 

During the ceremonies on November 28 and 29 at the Tokyo Dome, rookie girl group NewJeans took home two coveted Daesang” (grand prizes). These are for Artist of the Year and Song of the Year with their hit single “Ditto.” 

Meanwhile, SEVENTEEN secured the Album of the Year award for their April release, FML. Notably, this is the 13-member group’s first Daesang for MAMA Awards in their career.

In a groundbreaking milestone, the global sensation BTS claimed the Worldwide Icon of the Year award, marking their sixth consecutive win in this category. With their recent wins, the septet made history as the first artist to amass 50 MAMA trophies.

Despite the absence of BTS members at the event, Jungkook, the group’s youngest member, expressed gratitude in a pre-recorded video message. “We are immensely grateful for our ARMYs’ steadfast love,” he said. “Although we are not all here today, we will reunite as a stronger one soon. Until then, stay healthy and joyful at every moment.” 

Given these, all three Daesang recipients—BTS, SEVENTEEN, and NewJeans—emerge from HYBE, the entertainment conglomerate encompassing diverse sub-labels. To note, BTS is under Big Hit Music, SEVENTEEN is under Pledis Entertainment, and NewJeans under ADOR

With the HYBE family sweeping the 2023 MAMA Awards, it underscores their collective dominance and influence in the dynamic realm of Asian music.

MAMA Awards 2023 Winners

Meanwhile, the rest of the winners are: 

  • Best Male Group: SEVENTEEN 
  • Best Female Group:  NewJeans
  • Best Male Artist: BTS’ Jimin 
  • Best Female Artist: BLACKPINK’s Jisoo
  • Best Dance Performance (Male Group): SEVENTEEN
  • Best Dance Performance (Female Group): NewJeans 
  • Best Dance Performance (Male Solo): BTS’ Jungkook
  • Best Dance Performance (Female Solo): BLACKPINK’s Jisoo
  • Best Vocal Performance (Group): AKMU
  • Best Vocal Performance (Solo): Parc Jae Jung 
  • Favorite Dance Performance (Male Group): TREASURE
  • Favorite Dance Performance (Female Group):  LE SSERAFIM
  • Favorite Global Performer (Male Group): ATEEZ
  • Favorite Global Performer (Female Group): (G)I-DLE
  • Best New Male Artist:  ZEROBASEONE
  • Best New Female Artist: TripleS
  • Best Music Video: BLACKPINK’s Jisoo (“Flower“)
  • Best OST: BTS (“The Planet“)
  • Best Rap & Hip Hop Performance: Agust D (“People Pt.2” feat. IU)
  • Best Collaboration:  BTS’ Jungkook (“Seven” feat. Latto)
  • Favorite New Artist – RIIZE, ZEROBASEONE
  • Favorite International Artist: Yoshiki
  • Favorite Asian Girl Group: Kep1er
  • Favorite Asian Boy Group: INI 
  • Inspiring Achievement: TVXQ
  • Galaxy Neo Flip Artist: TREASURE

Featured image: NewJeans poses for their 2024 Season’s Greetings. Credit: Twitter/NewJeans

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SEVENTEEN’s Hoshi Reveals Hilarious Reason for Renewing HYBE Contract

Hoshi from SEVENTEEN has captured the spotlight for a relatable and comical reason behind his decision to renew his contract with HYBE Labels. The SEVENTEEN BSS member admitted he was mainly motivated by good food when it was time to decide on renewing his HYBE contract!

SEVENTEEN’s Hoshi Reveals The Real Reason for Renewing HYBE Contract

During a recent appearance on the YouTube show ‘Salon Drip’, hosted by Jang Do Yeon, Hoshi candidly shared he was impressed with the HYBE building.

“I am so thankful that we are a part of HYBE now,” he said. “The company building is so tall, it’s so cool inside when the weather is warm, it’s warm inside when the weather is cold, we can enter with face recognition, they give us transportation wherever we go… it used to be during our debut days that we were always dying of heat when the weather was warm, we were freezing to death when the weather was cold, and we were always cramped with so many people in a small space.”

When asked what is the best thing about being with HYBE, Hoshi pointed out that SEVENTEEN members can now enjoy good food regularly.

“To be honest, there are so many great things about HYBE… but I guess for me, the essentials are important,” he said. “So I ordered ramyeon at the company cafeteria. I was expecting the regular ramyeon, but what I got was ramyeon was topped with abalone and octopus.”

This was clearly an eye-opener for Hoshi. “Right at that moment, I knew that I had to renew with the company,” he declared.

Is SEVENTEEN Signed with HYBE?

While SEVENTEEN is still signed with PLEDIS Entertainment, HYBE Corporation acquired the majority of shares in the label on May 25, 2020, with PLEDIS remaining an independent entity. As a result, technically, SEVENTEEN is signed to both PLEDIS Entertainment and HYBE. In July 2021, all SEVENTEEN members, including Hoshi, renewed their HYBE contract.

Hoshi’s humorous anecdote about escalating meal costs offers a glimpse into the more relatable aspects of being a successful K-pop idol. His decision to continue his journey with HYBE reinforces the strong bond between the members of SEVENTEEN and their commitment to continue creating music together under the label’s banner.

SEVENTEEN recently released the new single “God of Music” from the album ‘SEVENTEENTH HEAVEN’.

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HYBE And MBC Finally Resolve Four-Year Conflict

It has been a long time but HYBE and MBC have finally resolved their four-year conflict. The renowned record label and the broadcasting company have settled their differences in a recent meeting.

Four-Year Conflict Between HYBE and MBC Finally Resolved

On October 30, HYBE Label’s chairman Bang Si Hyuk made a visit to MBC for an open and candid discussion with MBC president Ahn Hyeong Joon. The meeting was made possible after Ahn extended an invitation as a gesture of regret. During this meeting, Ahn expressed his regret for MBC’s past wrong and outdated practices that had caused harm and hurt to HYBE’s artists.

Ahn also issued a statement regarding their meeting. “We firmly agree that there’s a need to establish a relationship between artists and broadcasting companies that befits the respectable status of K-pop,” he said. “Additionally, we also agreed to improve the long-standing flawed production culture between broadcasting and entertainment companies and to create an environment for content production with mutual respect and consideration.”

Bang’s statement reflected his appreciation for the gesture. “I’d like to express my deep gratitude to MBC for their sincere apology and their commitment to improving the rights of K-pop artists,” he said. “I hope this meeting will serve as a starting point for a new era where a healthy content production environment is established across the entire domestic entertainment industry, transcending the boundaries of our two companies.”

HYBE’s Plans for the Future

During the meeting, Bang Si Hyuk underscored the paramount importance of prioritizing artists’ rights to ensure the sustainable growth of K-pop. He highlighted specific areas requiring improvement, such as the practice where artists have to endure prolonged waiting times to interact with the production team even after a program has concluded. HYBE further revealed that both parties expressed their intention to engage in further discussions aimed at establishing a healthy content production environment and striving for tangible outcomes in the near future.

The four-year conflict between HYBE and MBC originated in 2019 when BTS performed at a significant year-end music show in the United States, resulting in their inability to participate in MBC’s annual year-end event, “MBC Music Festival,” on the same day. Consequently, all artists affiliated with HYBE have been restricted from appearing on MBC’s “Music Core” since that incident. This protracted dispute has been a source of contention in the K-pop industry, and the recent meeting signifies a potential turning point in resolving these issues and fostering a more collaborative and artist-friendly environment.

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