HYBE Fined $90K for Waste Disposal Mistake: What Went Wrong?
HYBE fined $90K for a waste disposal mistake after incorrectly reporting annual revenue. Discover what went wrong and how it impacts the company.
HYBE, the South Korean entertainment company behind popular artists like BTS, has reportedly been ordered to pay an additional $90,000 USD in waste disposal fees. This issue arose after the company made an error in reporting their annual revenue, which directly impacted the amount of waste fees they were required to pay.
On October 24, it was revealed that HYBE reported their 2023 revenue as 2.18 billion won instead of the accurate 2.18 trillion won ($1.6 billion USD). This error, involving the omission of three zeros, resulted in a lower calculation of their waste disposal fees. Under South Korean law, companies that produce or import hard-to-recycle plastic are required to pay waste disposal fees based on their revenue and the amount of plastic emitted.
Due to the misreported figure, HYBE initially paid 149.64 million won ($112,000 USD) in waste disposal fees. However, the correct fee should have been 275.83 million won ($206,000 USD), leading to a shortfall of approximately 125.12 million won ($90,000 USD).
The Environmental Impact of HYBE's Plastic Production
According to the Korea Environment Corporation, HYBE produced 1,397 tons of plastic in 2023. A significant portion of this, about 1,249 tons (89%), was used for album production, while the remaining 148 tons (11%) was for merchandise. As part of South Korea’s regulations, companies must report their revenue and plastic emissions in the waste disposal system, which calculates their fees accordingly.
The error in HYBE’s revenue entry was not initially caught, and the company paid the calculated fee in May. However, the Korea Environment Corporation became aware of the mistake in September, and on October 11, they issued an additional fee notification to HYBE.
HYBE has been notified of the additional $90,000 USD fee and has been given until the end of October to make the payment. A representative from the Korea Environment Corporation acknowledged that the mistake went unnoticed until a company official brought it to their attention.
Environmental Accountability
This incident sheds light on the increasing responsibility that companies, especially in the entertainment industry, have in managing their environmental impact. HYBE’s large-scale plastic production for albums and merchandise highlights the challenges companies face in balancing business growth with environmental regulations.
Conclusion: A Lesson in Transparency
HYBE's reporting error has brought attention to the importance of accurate financial disclosures, particularly when it affects environmental obligations. As companies continue to grow, maintaining transparency and ensuring compliance with environmental laws is essential for fostering trust and accountability in the industry. The additional payment will ensure that HYBE meets its obligations, while the incident serves as a reminder of the environmental impact of mass production.
