HYBE has responded to a New York Times report on NewJeans contracts, defending the agreements as compliant with South Korean legal standards and negotiated with the members, their parents, and legal representatives. The dispute centers on the protections for minors in the contracts, which HYBE claims were included in a supplementary agreement.
Broader Implications For K-Pop Talent Management
The contract dispute between HYBE and The New York Times has highlighted the tensions between traditional agency models and global transparency demands in the K-pop industry. Notably, the industry’s growth and increasing global presence have led to a clash between the traditional practices of Korean entertainment companies and the expectations of international audiences and media outlets. For all the noise surrounding the dispute, the salient point is that K-pop’s global expansion has brought attention to the industry’s talent management practices, which may need to adapt to meet international standards.
HYBE, formerly known as Big Hit Entertainment, has been at the forefront of the K-pop industry’s growth, with its artists such as BTS and Tomorrow X Together achieving international success. The company’s history dates back to 2005, when it was founded as Big Hit Entertainment, and has since grown into a multinational conglomerate. However, the industry’s traditional agency model, which often involves long-term exclusive contracts and a high degree of control over artists, may not be sustainable in the face of growing global scrutiny.
According to Hybe, all its labels enter into a government-standard supplementary agreement for minors with their trainees, which includes provisions protecting personal rights, the right to sleep, the right to education, and the right to rest. However, the dispute over NewJeans’ contracts has raised questions about the calculation of financial penalties, the use of artists’ voices and likenesses, and the extent to which members and their families can influence the agreements. It would seem that the K-pop industry’s talent management practices are under pressure to evolve and become more transparent.
Record Earnings Amid Contract Controversy
Despite the controversy surrounding NewJeans’ contracts, HYBE has reported record earnings, with revenue reaching 1.5257 trillion Korean won ($1.13 billion) and operating profit of 188.5 billion Korean won ($140.2 million) in the third quarter of 2026. The company’s success has been driven by the global popularity of its artists, including BTS, whose world tour has generated significant revenue. However, the contract dispute has highlighted the need for the industry to balance its commercial success with greater transparency and accountability in its talent management practices.
The future of talent management in the K-pop industry is likely to involve a shift towards more transparent and artist-friendly contracts, as well as greater investment in artist development and welfare. As the industry continues to grow and expand globally, it will be important for companies like HYBE to adapt to changing expectations and regulations. The company’s multi-home, multi-genre strategy, which involves launching new labels and signing artists from diverse backgrounds, may be a step in the right direction. However, the industry as a whole will need to address concerns around contract transparency, artist welfare, and the calculation of financial penalties to ensure its long-term sustainability.
HYBE’s CEO, Lee Jae-sang, has stated that the company is discussing diverse group and solo activities with BTS members and is preparing follow-up group and solo activities after the tour. The company’s growth in 2024-2025, during the members’ military service, has been cited as evidence that the multi-home, multi-genre strategy has reduced dependence on BTS. As the K-pop industry continues to evolve, it will be important for companies like HYBE to prioritize transparency, accountability, and artist welfare in their talent management practices. With 1.5257 trillion Korean won in revenue, HYBE has set a new record for itself, and the company will likely continue to shape the future of the K-pop industry.
Sources
- Hybe
- Hybe defends NewJeans' contracts amid scrutiny over leaked agreements
- BTS’ Comeback Drives HYBE’s Quarterly Earnings to All-Time Highs
- BTS, Katseye Drive Hybe to Record Quarterly Revenue and Profit
- HYBE (XKRX:352820) (Q3 2026) Earnings Call Highlights: Record Revenue of KRW 1. …
- HYBE Fires Back At The New York Times' NewJeans Exposé
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