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Apay Securities Domestic Stock Market
HYBE and label representatives going to jail??
HYBE owns 80% of ADOR's shares. If they want to fire Min Hee-Jin, they can simply hold an extraordinary general meeting and dismiss her. But why are they complicating things by publicly announcing it to the media under the pretext of seizing Min Hee-Jin's management rights? This isn't a profitable move, so why handle internal matters through the media?? The only plausible reason is that they're trying to avoid paying Min Hee-Jin, but even considering that, HYBE's continued media play doesn't make sense. However, today an article in Kyunghyang explained the reason. It said that HYBE forced Min Hee-jin to manipulate sales by 100,000 copies. The HYBE email released today starts by saying they did not force any manipulation. In a situation where Min Hee-Jin's lawyer might bring forth evidence, they're nervously revealing an email claiming they didn't force sales manipulation?? Isn't this an admission of coercion? People think sales manipulation is a minor issue, but it's a serious criminal offense. Assuming an album costs 100,000 won, 100,000 copies would amount to 10 billion won. ADOR would need to account for 10 billion won as costs, which would require fraudulent accounting. Normally, fraudulent accounting turns a loss into a profit, resulting in higher corporate taxes, so the state doesn't lose out. But in ADOR's case, turning a profit into a loss avoids paying more than 2 billion won in taxes, which is highly sensitive tax evasion from the perspective of the prosecution and the state. Additionally, they can't avoid criminal penalties for fraudulent accounting. The problem is that if Min Hee-Jin, as the CEO, goes through with this, she would become liable for tax evasion, breach of trust, and fraudulent accounting, making it correct for her to refuse. Meanwhile, if we assume BTS and others like LE SSERAFIM, ILLIT, and SEVENTEEN also engaged in sales manipulation, and back-calculate the album sales, the estimated tax evasion could range from 80 billion to 150 billion won. This estimate is based on extrapolating the 100,000 copies forced on ADOR to 1 million copies across other labels. If designated as a large company, targeted investigations by the prosecution would be unavoidable. The charges of breach of trust and tax evasion would fall on HYBE's CEO and each label's CEO.
The end of the story.
HYBE and label representatives going to jail??
HYBE owns 80% of ADOR's shares. If they want to fire Min Hee-Jin, they can simply hold an extraordinary general meeting and dismiss her. But why are they complicating things by publicly announcing it to the media under the pretext of seizing Min Hee-Jin's management rights? This isn't a profitable move, so why handle internal matters through the media?? The only plausible reason is that they're trying to avoid paying Min Hee-Jin, but even considering that, HYBE's continued media play doesn't make sense. However, today an article in Kyunghyang explained the reason. It said that HYBE forced Min Hee-jin to manipulate sales by 100,000 copies. The HYBE email released today starts by saying they did not force any manipulation. In a situation where Min Hee-Jin's lawyer might bring forth evidence, they're nervously revealing an email claiming they didn't force sales manipulation?? Isn't this an admission of coercion? People think sales manipulation is a minor issue, but it's a serious criminal offense. Assuming an album costs 100,000 won, 100,000 copies would amount to 10 billion won. ADOR would need to account for 10 billion won as costs, which would require fraudulent accounting. Normally, fraudulent accounting turns a loss into a profit, resulting in higher corporate taxes, so the state doesn't lose out. But in ADOR's case, turning a profit into a loss avoids paying more than 2 billion won in taxes, which is highly sensitive tax evasion from the perspective of the prosecution and the state. Additionally, they can't avoid criminal penalties for fraudulent accounting. The problem is that if Min Hee-Jin, as the CEO, goes through with this, she would become liable for tax evasion, breach of trust, and fraudulent accounting, making it correct for her to refuse. Meanwhile, if we assume BTS and others like LE SSERAFIM, ILLIT, and SEVENTEEN also engaged in sales manipulation, and back-calculate the album sales, the estimated tax evasion could range from 80 billion to 150 billion won. This estimate is based on extrapolating the 100,000 copies forced on ADOR to 1 million copies across other labels. If designated as a large company, targeted investigations by the prosecution would be unavoidable. The charges of breach of trust and tax evasion would fall on HYBE's CEO and each label's CEO.
The end of the story.
Original post here.
Comments have no ratings
- "An investigation on HYBE is needed."
- "A proper HYBE investigation must be done. Overall, the entertainment industry is gross, but they seem truly rotten."
- "While the numbers might be exaggerated, if this happened, it's tax evasion... I'm unsure how they dealt with the accounting though."
- "I can't believe they even forced 100,000 copies onto ADOR, who they really dislike. I doubt they didn't coerce other labels as well."
- "Everyone who was saying Min Hee-Jin is an absolute genius never seem to appear in these posts."
- "This is a bit much...and surely a tax audit was done recently??"
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