According to internet users, HYBE was allegedly using funds from ADOR to inflate the revenue of HYBE IM, the company’s gaming subsidiary.
According to a post on the online forum Theqoo (via Koreaboo), HYBE was allegedly using funds from ADOR to increase sales of HYBE IM, its gaming subsidiary. The assumption, however, has not yet been officially proven.
Initially, transactions between the two companies would be related to Rhythm Hive, a HYBE IM game that includes NewJeans in its system. However, the expectation was that HYBE IM would pay ADOR for the intellectual property of its artists, but, in fact, the opposite happened.
The Theqoo publication highlighted an article that pointed out transactions revealing extremely high values on the part of the record company for the games company, such as 4.10 billion Won (around US$2.98 million). However, HYBE IM only transferred ₩90.0 million Won (approximately US$65,300) to ADOR, which caused strangeness and suspicion among users.
Furthermore, putting the numbers into perspective, the money received by HYBE IM is equivalent to 3.7% of ADOR’s sales, and 13.3% of HYBE IM’s sales last year. The explanation behind such a large transaction, however, was brief. Both companies stated that these were game royalties, but there appears to be suspicion in the media about HYBE’s attempt to inflate HYBE IM’s revenue using ADOR, whose earnings are due to the success of NewJeans itself.
To date, no official statement on the matter has been released by HYBE or the other two companies involved.
Source: Recreio
