Scandals involving BTS's Suga, Chairman Bang Si-hyuk anger HYBE shareholders

Bang Si-hyuk, center, chairman of HYBE, walks down a street in Los Angeles, California, with BJ Kwajeup Seyeon, left, and her sister. Captured from 'I Am Walking' YouTube channel

A recent surge of sarcastic comments in a HYBE stock discussion forum reveals the growing frustration among shareholders, as the company's stock price has nearly halved since June of last year.

The anger has been further fueled by recent controversies. BTS member Suga was caught driving under the influence while serving his alternative military duty, and HYBE Chairman Bang Si-hyuk was seen with an adult content broadcaster, which caused a stir.

Even in the usually discreet world of K-pop agencies, some are questioning whether HYBE, Korea's leading entertainment company, has a crisis management problem.

HYBE’s stock price has remained weak, affected by a wave of negative news.

Shareholders’ frustration has been directed primarily at Bang and the company’s management.

HYBE faced backlash after issuing a statement on Wednesday apologizing for Suga’s DUI. Critics accused the company of downplaying the incident by referring to his vehicle as an "electric kickboard" rather than an "electric scooter."

BTS member Suga / Couutesy of BigHit Music

Focus on protecting artists, executives

While a DUI on an electric kickboard incurs a fine, operating an electric scooter while intoxicated carries the same legal consequences as driving a car under the influence.

Further exacerbating the situation, Suga’s blood alcohol concentration was reported to be 0.227 percent, far exceeding both the license revocation threshold of 0.08 percent and the aggravated penalty threshold of 0.2 percent, despite his claim that he only had "one beer."

BTS’ fandom, known as ARMY, which has long prided itself on the members' clean reputation, is now divided. Some are calling for Suga's departure, saying that his DUI has tarnished BTS's reputation, and others believe he should take time to reflect and return.

On Thursday, the YouTube channel I Am Walking released photos of Bang walking in Los Angeles with BJ Kwajeup Seyeon, 23, a woman broadcaster known for making adult-oriented content on AfreecaTV, and another woman.

BJ Kwajeup Seyeon said that Bang had helped her with restaurant reservations in LA and accompanied her, but the incident quickly escalated into a controversy.

Despite HYBE’s legal team requesting that the photos be removed from online communities, they continued to spread.

Industry insiders have criticized HYBE's crisis management approach. An official from a K-pop agency said, "In the K-pop industry, the relationship with the fandom is crucial, but HYBE seems to be more focused on protecting its artists and executives."

Another entertainment industry insider said, "HYBE responded to the photos of Chairman Bang in a manner more typical of a general corporation than an entertainment company, which suggests a lack of consideration for its primary customer base — the fans."

Ador CEO Min Hee-jin, left, and Bang Si-hyuk, chairman of HYBE, were involved in a dispute over management control of Ador, a sublabel of HYBE. Yonhap

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by staff of The Korea Times.