HYBE is undergoing a tax investigation by the National Tax Service for the first time since the company was established.
According to the industry, the National Tax Service recently secured accounting books by sending investigators to the HYBE office in Yongsan, Seoul. The investigation was reportedly conducted by the Seoul Metropolitan Government’s first bureau of investigation.
This is the first tax audit since the establishment of HYBE. HYBE was not subject to any audit because it failed to make operating profit until 2015, but has continued to increase operating profit since 2016. In particular, last year, it achieved annual sales of 1.2559 trillion won and operating profit of 190.2 billion won, a first in the entertainment industry.
The industry expects the National Tax Service to look into issues related to HYBE’s overall business, including the expansion of its business and the establishment of its overseas subsidiaries.
As of the first quarter, HYBE has 17 affiliates including Weverse Company, Big Hit Music, and Pledis Entertainment. Among them, there are a total of nine overseas subsidiaries, including those in Japan, the United States, China, and Hong Kong.
In April last year, HYBE spent KRW 1 trillion to acquire Ithaca Holdings, which has global pop stars such as Justin Bieber and Ariana Grande.
Source: Miraebiz
