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What HYBE’s Recent Controversies Mean for the K-Pop Business

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K-pop is in the midst of its biggest global moment yet, but as the industry scales new heights, questions are emerging about whether its business practices and ethical standards are keeping pace. A recent court ruling in South Korea has brought this issue into sharp focus.

On July 22, 2025, the Seoul Southern District Court found three former employees of HYBE’s affiliate labels, Source Music, BigHit Music and Belift Lab, guilty of insider trading. Prosecutors revealed that the employees sold HYBE stock using undisclosed information about BTS’s forthcoming military enlistment, a move that violated South Korea’s Capital Markets Act.

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The case centers on HYBE’s dramatic stock plunge on June 14, 2022, the day BTS announced via their official YouTube channel that they would pause group activities to fulfill South Korea’s mandatory military service requirements. The news sent HYBE’s shares tumbling nearly 25% in a single day, erasing roughly 1.5 trillion KRW (about $1.5 billion) in market value. According to prosecutors, the three employees, who were still on staff at HYBE’s subsidiary labels at the time, had access to internal reports about the announcement before it went public. They allegedly sold their shares in advance to sidestep
the looming financial hit.

As a result, the court handed down suspended prison sentences to all three former employees. A former Source Music staffer (identified as “A”) received a 10-month prison term, suspended for two years, along with a fine of approximately 231 million KRW (around $168,000 USD). The other two, who previously worked at BigHit Music and Belift Lab (“B” and “C”), were each sentenced to six months in prison, also suspended for two years and fined 51 million KRW (about $37,000 USD) and 65 million KRW (about $48,000 USD). In addition, all three were ordered to forfeit the full amount they had profited by avoiding stock losses.

In its ruling, the court stated, “An artist’s activity schedule is highly confidential information that directly impacts an entertainment company’s revenue. Using that information for personal gain is a serious offense that undermines market integrity and deserves public condemnation.”

According to a report by Music Business Worldwide, HYBE’s U.S. PR agency Tag PR initially stated on July 24 that “the individuals in question are not employees of HYBE.” However, on July 25, HYBE’s global communications team in Seoul clarified to MBW that all three individuals were indeed former employees of HYBE’s affiliate labels. The company added that “they have all already left their positions” and that “Chairman Bang Si-hyuk has no personal ties to them.”

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Even as the insider trading scandal was still making headlines, HYBE was hit with another major controversy. On July 29, the Seoul Regional Tax Office’s 4th Bureau of Investigation launched a tax audit into the company’s headquarters. The probe is reportedly examining allegations that HYBE founder and chairman Bang Si-hyuk used a private fund he controlled to acquire shares before the company’s 2019 IPO, later securing significant profits once the stock went public.

With three former employees recently convicted of insider trading, public scrutiny has now shifted toward Bang himself, as both cases involve questions surrounding HYBE’s IPO and the handling of sensitive financial information. The results of this investigation and any ensuing legal action are expected to draw intense attention from the global music and business industries alike.

Despite the ongoing controversies surrounding HYBE, BTS continues to break records on the global music stage. According to Billboard’s chart story published on July 28, the group’s first official live album, PERMISSION TO DANCE ON STAGE – LIVE, debuted at No. 10 on the Billboard 200 chart dated Aug. 2. This milestone marks BTS’s 16th album to appear on the Billboard 200, with eight of those releases landing in the top 10, the most for any Korean act.

Meanwhile, the members’ solo careers are thriving. Jin, fresh from his military discharge, has kicked off his first solo fan concert world tour, the Run Seokjin Tour (#RUNSEOKJIN_EP. TOUR), which includes 18 shows across 9 cities. Earlier this year, J-Hope wrapped up his debut solo world tour, performing 31 shows in 15 cities, and he’s set to headline Lollapalooza Berlin this August.

As K-pop’s global spotlight burns brighter than ever, the cracks beneath the surface are becoming harder to ignore. For the industry’s hard-won achievements to endure, its systems and ethical standards must evolve just as quickly as its cultural influence. If K-pop aims to sustain its place as a global powerhouse, it faces a defining question: As K-pop continues to grow, is it truly taking root in honest ground?

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Tim Dillon Fired From Riyadh Comedy Festival for Saudi Slavery Remarks: ‘They Didn’t Like That’

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Tim Dillon will not be traveling to the Riyadh Comedy Festival next month. The California comedian and host of The Tim Dillon Show podcast says he was fired from the Oct. 8 Saudi Arabia festival for comments he made about the country on Joe Rogan‘s podcast.

Besides losing a $375,000 payday (an amount Dillon confirmed to Rogan), he also lost a nearby warm-up gig in Dubai two nights before his Riyadh appearance after mixing up the Arab emirate with Abu Dhabi (the rival cities are both part of the United Arab Emirates).

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“I mixed them up — apparently this is a big deal over there. This is a real problem,” he said on a recent episode of his podcast. “This is not a malicious slander. It’s a mistake.”

The Riyadh Comedy Festival — which mostly takes place at the Bakr Al-Sheddi Theatre and ANB Arena from Sept. 25 to Oct. 9, features a number of top tier comedians including Dave Chappelle, Bill Burr, Gabriel Iglesias, Aziz Ansari, Kevin Hart, Jeff Ross, Chris Distefano, Tom Segura, Jo Koy, Sam Morril, Hannibal Buress, Andrew Schultz, Sebastian Maniscalco, Whitney Cummings, Jimmy Carr, Louis CK, Pete Davidson, Russell Peters and Chris Tucker.

“Supposedly, MBS is a fan of mine,” Dillon said two weeks ago on the Joe Rogan Experience podcast, referring to Saudi head of state Mohammed Bin Salman.

Dillon was reportedly fired from the festival for claiming that Saudi Arabia relies on slave labor — a controversial take on the country’s foreign laborers laws that some groups, including Human Rights Watch, have criticized as “slavery-like.” Legally, slavery was abolished in the Kingdom in the 1960s.

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Dillon said the slavery jokes were a misunderstanding with his Saudi hosts, saying on his podcast, “I was defending them for having slaves. I literally said, ‘Slaves are hard workers and for the most part agreeable.’ But they didn’t like that.”

“You can literally support somebody too much,” he added. “In life, this happens. Too many compliments; too much support — and then they turn on you.”

He clarified his comments further, noting, “If i was a slave — not that I want to be one, but if I was and I built this really nice thing, I might say to my slave children, ‘Daddy built that,'” concluding, “Apparently this got to the people in Saudi Arabia and they were unhappy about it.”

The Riyadh Comedy Festival opens Sept. 25 with performances by Burr, Maz Jobrani and Andrew Santino and Bobby Lee from the Bad Friends podcast. More here.

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Wilson Phillips, Kenny Loggins & More to Perform at Charity Concert Honoring Brian Wilson & The Beach Boys

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Wilson Phillips, Kenny Loggins, David Pack of Ambrosia and more are set to perform at a charity concert celebrating the music of Brian Wilson and The Beach Boys on Saturday, Sept. 27 at the Granada Theatre in Santa Barbara.

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Wilson Phillips features two of Wilson’s daughters, Carnie and Wendy Wilson, as well as Chynna Phillips, the daughter of John and Michelle Phillips. The concert will also feature Brian Wilson’s grandchildren, so it will spotlight three generations of the Wilson family.

The concert, dubbed An All-Star Tribute to the Music of Brian Wilson & Songs of The Beach Boys, will feature the Folk Orchestra of Santa Barbara. Other guest performers are expected to include The Honeys; former members of The Beach Boys and the Brian Wilson Band; and keyboardist Don Randi (The Wrecking Crew); with appearances by Rosemary Butler (Jackson Browne), Ken Stacey (Elton John), Hunter Hawkins (Kenny Loggins), Carly Smithson (American Idol), Alisan Porter (The Voice) and poet Stephen J. Kalinich. These acts will be backed by The Tribe Band, who will perform an array of Beach Boys favorites.

The show begins at 7:30 p.m. Here’s a link for tickets. VIP packages are also available.

Proceeds will be donated to Adam’s Angels, a local group of volunteers, and the Surfrider Foundation of Santa Barbara, dedicated to the protection and enjoyment of the world’s oceans and beaches.

Brian Wilson died on June 11 at age 82. He was the third member of the fabled group to pass, following brothers Dennis in 1983 at age 39 and Carl in 1998 at age 51.

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AI Artist Xania Monet, Diddy Sentencing Looms, Ticketmaster Lawsuit & More Music Law News

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THE BIG STORY: If you needed another clear sign that artificial intelligence is seeping into every aspect of American cultural life, here’s one: An AI artist just signed a record deal, the hallowed milestone of success for any emerging musician.

As first reported by Billboard last week, Xania Monet — the avatar of a woman named Telisha Jones who writes her own lyrics but uses Suno to create the music — inked a record contract worth millions. The deal has quickly become the talk of the industry, including from stars who have spoken out, including Kehlani, who said: “I don’t respect it.”

But…what exactly is a label buying here? It remains unclear the extent to which you can secure intellectual property rights to AI-generated songs, raising hurdles for monetizing them. And platforms like Suno are still facing trillion-dollar infringement lawsuits that essentially claim the technology itself is illegal. For more, go read our full story.

You’re reading The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between. To get the newsletter in your inbox every Tuesday, go subscribe here.

Other top stories this week…

BLIGE CASE TOSSED – A federal judge dismissed a lawsuit against Universal Music Group claiming Mary J. Blige’s enduring 1992 hit “Real Love” infringed the oft-sampled 1973 funk song “Impeach the President” by the Honey Drippers, which has been used by Run-DMC, Dr. Dre, Doja Cat and many others over the years. The judge said the two songs were so different that nobody would hear the earlier song: “The songs do not sound the same.”

DIDDY SENTENCING – Attorneys for Sean “Diddy” Combs urged a federal judge to sentence him to just 14 months in prison on his prostitution convictions, asking him to reject the kind of “draconian” punishment sought by prosecutors. Because the star has already served 13 months in jail since he was arrested, that sentence would see him released almost immediately: “It is time for Mr. Combs to go home.”

LETTERS OF SUPPORT – To help make that argument, Diddy’s lawyers filed dozens of letters from supporters, pleading with the judge to show lenience toward the rapper when he sentences him next month. They came from Diddy’s mother and kids, from ex-girlfriend Yung Miami and from an executive at hip-hop label Quality Control Music — among many others.

SUNO SUIT 2.0 – Separate from the Xania Monet situation, the major record labels filed an amended version of their copyright lawsuit against the AI music firm, adding new allegations that the company illegally “stream-ripped” songs from YouTube to train its models. That’s a hugely important new claim: In a separate such lawsuit against Anthropic, a federal judge ruled this summer that AI training itself is likely a legal “fair use” but that using pirated works to do it could lead to many billions in potential damages.

FTC, YEAH YOU KNOW ME – The Federal Trade Commission filed a lawsuit against Live Nation and Ticketmaster accusing the concert giants of advertising misleading ticket prices and allowing scalpers to buy up tickets and resell them at inflated prices. The case came months after the agency sued a ticket broker that allegedly used thousands of fake Ticketmaster accounts to buy and resell tickets to Taylor Swift concerts and other events — and two years after Live Nation was hit with a sweeping monopoly lawsuit by the U.S. Department of Justice.

HYPE VID SETTLEMENT – Mike Tyson settled a lawsuit claiming he illegally used the Jay-Z, DMX and Ja Rule song “Murdergram” in an Instagram video promoting his boxing match against Jake Paul. The case was filed by Ty Fyffe, a producer and co-writer of the 1998 track who claimed that Tyson had willfully infringed his copyrights by using the song in a training video ahead of his much-hyped fight with Paul.

LOSE YOUR … CASE? – Meta urged a federal judge to dismiss a lawsuit from Eight Mile Style, a music publisher that owns hundreds of Eminem songs, which claims the social media giant made “Lose Yourself” and other iconic tracks available to billions of users. In the motion, Facebook’s lawyers argued the case was “remarkably short on specifics” about actual infringing material: “Fanciful estimates are not a substitute for well-pleaded facts,” the company wrote.

NEVER MEANT TO CAUSE YOU ANY PAIN – The Prince estate asked a judge to dismiss a lawsuit by the late singer’s Purple Rain co-star Apollonia (Patty Kotero) that claims the estate is trying to “steal” her name, arguing it has no intention of forcing her to change her name — and has repeatedly told her as much. The filing did say, however, that Apollonia secured her own trademarks during “the chaotic period following Prince’s death.”

SEX TAPE LEAK CASE – Colombian pop star Beéle was hit with a lawsuit alleging invasion of privacy and sexual cyberharassment from ex-girlfriend Isabella Ladera, claiming he is responsible for leaking their sex tape. Beéle’s reps have denied that he was the source of the leak and said the singer is “also a victim,” but Ladera’s lawsuit placed the blame squarely on him: “Only two people had the videos, and Ladera had already erased them almost a year and a half before.”

MEGAN THEE PLAINTIFF – Lawyers for Megan Thee Stallion argued in court filings that the social media personality DJ Akademiks must reveal whether Tory Lanez sent him a confidential DNA testing report during the singer’s criminal case. The filings came amid discovery in a defamation case against Milagro Gramz, a gossip blogger and ardent online defender of Lanez.

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