Hive, First Entertainment Company to Be Designated as a 'Large Business Group'

Last Year Total Assets Increased by 10% Year-on-Year to 5.3 Trillion

HYBE, the agency of groups BTS, SEVENTEEN, and NewJeans, is expected to be designated as a large business group for the first time among entertainment companies.

HYBE Building, Yongsan-gu, Seoul. [Image source=Yonhap News]

According to the Financial Supervisory Service's electronic disclosure system on the 8th, HYBE's asset size as of the third quarter of 2023 exceeded 5 trillion KRW for the first time, reaching 5.5235 trillion KRW. As of the end of last year, HYBE's total assets are estimated to have increased by 9.8% year-on-year to 5.3457 trillion KRW.

The Fair Trade Commission designates business groups subject to disclosure with total assets of 5 trillion KRW or more (large business groups) and the heads of those groups annually. HYBE is the first entertainment company to be designated as a large business group. HYBE's total assets are the combined figures of 16 affiliates, including Weverse Company, Big Hit Music, and Pledis Entertainment.

Upon designation as a large business group, regulations such as disclosure obligations and restrictions on internal transactions under the Fair Trade Act are imposed. Despite the enlistment of BTS members, HYBE recorded annual sales exceeding 2 trillion KRW for the first time in the industry last year, thanks to the successive hits of groups NewJeans and LE SSERAFIM and the strong performance of SEVENTEEN.

Previously, HYBE's designation as a large business group was anticipated last year. However, it avoided designation as its assets in 2022 fell short of 5 trillion KRW. The results of this year's large business group designation will be announced on the 1st of next month.