HYBE, 1.2 Trillion KRW in Merchandise Sales Over 3 Years... 3 Million KRW Fine for 'Sales Abuse'

Goods Sales Account for 19.5% of Total Sales
Kang Yujeong: "Light Punishment Compared to Astronomical Sales... 'Fansymbolmo' Bold Business Practices"

Hive, the largest entertainment agency in South Korea, has reportedly earned over 1 trillion won in revenue from selling 'idol goods' over the past three years.

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

According to data submitted by Hive to Kang Yoo-jung, a member of the National Assembly's Culture, Sports and Tourism Committee from the Democratic Party of Korea, the total sales of idol goods from 2021 to the first half of this year amounted to approximately 1.2079 trillion won.

This accounts for 19.5% of Hive's total sales (6.211 trillion won) during the same period.

Looking at Hive's sales composition for this year (Q1?Q2), music albums and digital music accounted for the largest share at 39.4% (394.6 billion won) of total sales (1.0013 trillion won), while goods sales (16.9%, 169.8 billion won) ranked third, closely approaching the second-highest sales category, performances (18.7%, 188 billion won).

On the other hand, the amount of fines imposed for 'tyranny' such as refusing or restricting refunds for legitimate return requests was found to be 3 million won.

Earlier, in August, the Korea Fair Trade Commission issued corrective orders and fines against the official online shopping mall operators of the four major domestic entertainment agencies?Hive, YG Entertainment, SM Entertainment, and JYP Entertainment?for such unfair practices.

At that time, Weverse, the operator of Hive's shopping mall Weverse Shop, was fined 3 million won, while the other three companies' shopping mall operators were each fined 2.5 million won. These companies received reduced fines by voluntarily correcting the violations.

Assembly member Kang stated, "The 3 million won fine paid by Hive is only 0.000025% of the astronomical revenue earned from goods sales," and argued that the severity of sanctions should be increased.

He added, "Light punishments lead to repeated 'goods power abuse,' and we will discuss measures to regulate this brazen business practice that takes 'fan loyalty' hostage during the National Assembly audit."